External view of semi-detached house driveway
Published on 20th April 2022

UK property spotlight: House prices continue to soar

A lack of homes on the market is behind increasing UK house prices, rising at their fastest rate for 15 years according to Halifax. 2022 sees the biggest one-year cash rise recorded in almost 40 years of the lender’s index history.

House prices continue to defy the economic climate and growing pressure on household finances caused by surging inflation and a steady rise in energy bills and borrowing costs.

Since the first lockdown some two years ago, the value of an average UK home has increased by over £43,500 to around £280,000, representing an 18% rise. Detached homes have seen the greatest rise of 21% in what is dubbed by the industry as ‘the race for space’. Over the year alone to March 2022, Halifax reports an increase of 10.8%, with Nationwide citing 14%. Although this is the eighth consecutive month for growth, several forecasters regard this as the peak for property values, with a significant easing expected over the new few years.

Properties in small towns, villages and the countryside, as well as by the sea, remain popular. Rightmove believes there are twice as many buyers as sellers at present.

Where prices have risen the most

Wales is the strongest-performing area for annual growth, with an average price rise of 13.9% over the past year according to the Office for National Statistics (UK House Price Index, January 2022). In contrast, London’s rate is 2.2%, although others estimate upwards to 7%. Nationwide agrees, with south-west England and East Anglia also proving to be property hotspots.

Average UK house prices in 2022

England: £265,00–£290,000
Wales: £206,000
Scotland: £183,000
Northern Ireland: £159,000

Gateway Today will keep you posted on more property news soon.

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