UK house prices rise by 8.3% says Zoopla

UK house prices rise by 8.3% says Zoopla

7:01 AM, 3rd August 2022, About A year ago

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Hot on the heels of yesterday’s news from Nationwide that house prices had rocketed in value by 11% over the past year, comes news from Zoopla that offers a different figure.

The property website says that the UK’s house prices have risen by 8.3% in the last 12 months, bringing the average home price to £256,600.

That’s a slower rate of growth compared to March’s recent high of 9.6% year-on-year, but prices are continuing to rise faster than the average annual rate over the last five years.

Despite higher mortgage rates and cost of living pressures, Zoopla says that committed buyers are pushing ahead, even as the market enters the summer holiday period.

Demand is still 25% above the five-year average

However, demand has slowed in the last few months, but it’s still 25% above the five-year average and on par with this time last year.

Zoopla says that the housing market is proving more resilient than many expected.

So much so, they are now predicting higher house price growth and more sales in 2022 than was anticipated at the start of the year.

The UK is on track for 1.3 million sales in 2022 with a house price growth of 5%, highlighting the continued interest in buying property.

Housing market is not immune from the impact of higher mortgage rates

The data shows there are enough people who want to keep moving to support normal levels of activity in the market – though the housing market is not immune from the impact of higher mortgage rates and the cost-of-living squeeze.

House price growth is slowing off a high base at the start of 2022.

And Zoopla is expecting the rate of growth to slow further over the second half of the year, but not as fast as some may expect.

While demand continues to outpace supply, the number of homes for sale is now recovering after a red-hot two years.

‘Affordable housing markets make the fastest price gains’

A spokesperson for Zoopla said: “Our House Price Index shows that the most affordable housing markets continue to make the fastest price gains.

“Average home values are rising the fastest in Wales, up 11.1%. They remain in double digits in the South West and the East Midlands, too.”

Of the UK’s largest cities, Nottingham boasts the strongest housing market, with annual house price growth of 10.7%.

Nottingham is followed closely by Bournemouth, up 10.2%, and Leeds, up 9.3%.

The spokesperson added: “Outside of the largest cities, homeowners in Wigan are coming out on top in house price growth. If you own a home there, you’ll have seen an average rise of 11.8% year-on-year.

“Homeowners in Mansfield have seen an 11.6% rise in their house price and Warrington’s house prices are up 11.2%.”

London is the UK’s most unaffordable housing market

House price growth has been slowest in the areas where prices are already high with London being the UK’s most unaffordable housing market.

This is limiting further price gains now, and prices have risen just 4% year-on-year.

That figure drops to just 3% in the highest value markets in the capital, like Westminster, Camden and Southwark.

Some of London’s suburbs are performing better, with house prices in Barking and Dagenham and Havering rising by more than 7% in 12 months.

Meanwhile in Scotland, Aberdeen remains the only city that has experienced negative house price growth over the last 12 months, with house prices down -1.6%.

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