£24,000 annual rise in average UK house price

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he average UK house price jumped by £24,000 in the year to March, official figures show.

The typical property value was £278,000 in March 2022 – after an annual increase of £24,000, the Office for National Statistics (ONS) said.

The annual growth rate in March, at 9.8%, was lower than an annual increase of 11.3% in February.

Average house prices rose over the year in England to a record high of £298,000 (an annual increase of 9.9%), in Wales at £206,000 (11.7%), in Scotland at £181,000 (8.0%) and in Northern Ireland at £165,000. (10.4%).

In England, the East Midlands recorded the strongest annual house price growth, with average prices rising 12.4% in the year to March.

The weakest annual house price growth was seen in London, where average prices rose 4.8% in the year to March.

Average house prices in London remain the most expensive in the UK, with an average price of £524,000 in March.

ONS house price statistician Ceri Lewis said: “Our latest figures continue to show house prices rising and remaining at record highs.

“UK rental prices also continue to grow rapidly across all countries and regions. After last year’s falls, London rent prices continue to recover with their strongest growth since November 2020.”

A separate ONS report showed private rental prices paid by tenants in the UK rose by 2.7% in the 12-month period to April, compared with 2.4% in the 12 month period to March.

Private rents increased by 2.5% in England, 1.7% in Wales and 2.9% in Scotland in the 12 months to April 2022.

Only the persistent lack of supply can prevent prices from falling

Marc von Grundherr, director of estate agent Benham and Reeves, said: ‘The winds of change are certainly starting to blow and while this building economic headwind is yet to derail the phenomenal rates of price growth in the real estate seen across the UK on an annual basis, it sure looks like dark clouds are gathering on the horizon.

Guy Gittins, CEO of Chestertons, said: “Historically, spring marks the start of increased activity on the market with an increase in properties coming to market. Not even halfway through March, we had also already seen an increase in buyer inquiries and sales compared to the same period last year.

Anna Clare Harper, director of real estate technology platform IMMO, said: “As with the broader economy, house price inflation is driven by supply shortages.

“This shortage is about housing in general, and quality housing that people can afford, in the places they want and need to live, in particular.”

The report was released on the same day as the ONS said consumer price index inflation rose to 9% in April from 7% in March.

Andrew Montlake, managing director of mortgage broker Coreco, said: “9% inflation, rising interest rates and a potential recession ahead will impact demand as lenders become increasingly cautious, which will limit what people can borrow.

“This will almost certainly cause the rate of price growth to slow in 2022 and next year. Only entrenched lack of supply can keep prices from falling.

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