UK’s average house price hits record high

UK’s average house price hits record high

10:20 AM, 7th September 2022, About A year ago

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The UK’s average house price increased in August to reach a record high – after a slight fall in July, the latest Halifax House Price Index reveals.

Their data shows that house prices increased by +0.4% in August, after falling 0.1% in July.

However, the annual rate of growth has eased to +11.5% – from +11.8% but a typical UK property now costs a record £294,260.

Kim Kinnaird, the director of Halifax Mortgages, said the increase was ‘relatively modest’ compared to recent times and added that the rate of monthly house price inflation over the past year has averaged around +0.9%.

‘House price reached another record high in August’

She said: “The typical house price reached another record high in August – as it has done in seven out of the eight months so far this year.

“However, the annual rate of growth dropped to +11.5%, from +11.8% in July, the lowest level in three months.

“While house prices have so far proved to be resilient in the face of growing economic uncertainty, industry surveys point towards cooling expectations across the majority of UK regions, as buyer demand eases, and other forward-looking indicators also imply a likely slowdown in market activity.”

Among the issues facing house prices is incomes being squeezed by the cost-of-living crisis – which could get worse with winter’s energy bills.

‘Raising interest rates into next year’

Ms Kinnaird said: “Borrowing costs are also likely to continue to rise, as the Bank of England is widely expected to continue raising interest rates into next year.

“With house price to income affordability ratios already historically high, a more challenging period for house prices should be expected.

“However, this should be viewed in the context of the exceptional growth witnessed in recent years, with average house prices having increased by more than £30,000 over the last 12 months alone.”

Wales remains at the top for annual house price inflation

Of the regions and nations, Wales remains at the top of the table for annual house price inflation, up by +16.1%, the strongest level of growth since early 2005.

This means average prices have risen by £31,246 over the last year, with an average property now costing £224,858.

The South West of England also continues to record a strong rate of annual growth, up by +14.5%, with an average property cost of £313,003.

The rate of annual growth in Northern Ireland eased back further last month to +12.5%, with a typical home now costing £185,505.

Scotland also saw another slowdown in the rate of annual house price inflation, to +9.4% from +9.5%. A Scottish home now costs an average of £204,362, another record high for the nation.

While London has continued to lag behind other nations and regions, the rate of annual house price inflation in the capital rose again to now stand at +8.8%, its highest level in over six years.

With a typical property costing a record £554,718 the capital’s average house price has risen by £44,669 over the last 12 months.

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