usage prices accelerated in June at the fastest pace in more than 17 years, despite the wave of interest increases in the past six months, according to the latest figures today.
National average prices rose 1.8 percent in the month to £294,845, the 12th consecutive monthly increase, according to data from the leading mortgage lender Halifax† The annual growth rate reached 13 percent, the highest since late 2004.
London lagged behind other regions in terms of home price inflation of 7.1% to an average of £547,031.
Despite the remarkable growth, Halifax said: cost of living pressure should slow price increases in the coming months.
Halifax managing director Russell Galley, said: “The UK housing market defied all expectations of a slowdown, with property prices averaging 1.8% in June, the biggest monthly increase since early 2007. This means house prices are now rising every month. have risen in the past and are up 6.8% or £18,849 in cash so far in 2022, taking the typical UK house price to a new all-time high of £294,845.
“The imbalance between supply and demand continues to be the reason that house prices are rising so sharply. Demand is still strong – although activity levels have slowed to line up with pre-Covid averages – while the stock of available homes for sale remains extremely low.
“Real estate prices seem to have been largely isolated from cost of living pressures so far. This is partly because the rise in the cost of living is currently felt most by lower-income people, who tend to be less active in buying and selling homes. By contrast, higher earners will likely be able to use extra cash saved during the pandemic, and the latest industry data shows mortgage loans are up by the highest amount since last September.
“Of course, the housing market will not remain immune to the challenging economic environment. But for now – as it has in recent years – it continues to demonstrate the unique combination of factors that influence prices.
“One remains the massive shift in demand for larger homes, with average prices for detached houses rising almost twice as fast as the number of flats over the past year (+13.9% vs. +7.6%).
“In the long run, however, the increased pressure on household budgets due to inflation and higher interest rates should weigh more heavily on the housing market, given the impact this has on affordability. Our latest survey found that the sharp rise in real estate prices over the past two years, coupled with much slower wage growth, has already pushed the house price-to-income ratio to an all-time high.
“So while it may come later than previously expected, a slowdown in home price growth is still to be expected in the coming months.”
London lags behind other regions in terms of annual house price inflation (+7.1%), but with an average property price of £547,031 it remains by far the most expensive place in the UK to buy a home.