House Price Index Reporting Continued Growth

Seven UK areas are seeing double-digit annual house price growth according to latest The Halifax House Price Index.  Wales is again the strongest performing region a fact also reported this month in the Zoopla House Price Report.  Annual house price growth was at 13.8% in Wales say Halifax with the average property price rising to £207,184.

Perhaps unsurprisingly, the Halifax say that the South West of England showed strong growth with price inflation up to 13.4%.  In the rest of the UK, Northern Ireland also has prices up 13.1% on this time last year and Scottish house prices up 9.2% say Halifax.

Russell Galley, Managing Director, Halifax, said:

“The UK housing market shrugged off a slightly slower start to the year with average property prices rising by another 0.5% in February, or £1,478 in cash terms. This was an eighth successive month of house price growth, as the resilience which has typified the market throughout the pandemic shows little sign of easing. Year-on-year prices grew by 10.8%, the fastest pace of annual growth since June 2007, pushing the average house price up to another record high of £278,123.”

Russell continued ““Looking ahead, as Covid moves into an endemic phase and almost all domestic restrictions are removed, geopolitical events expose the UK to new sources of uncertainty. The war in Ukraine is a human tragedy, but is also likely to have effects on confidence, trade and global supply chains.

“Surging oil and gas prices are one immediate consequence, meaning that inflation in the UK – already at a 30-year peak – will remain higher for longer. This will add to the squeeze on already stretched household incomes. While increases in Bank Rate look likely in the near term, the extent of the rises will depend on how it affects prices and companies’ approaches to pay over the months to come.

“These factors are likely to weigh on buyer demand as the year progresses, with market activity likely to return to more normal levels and an easing of house price growth to be expected.”

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