A lack of homes on the market is behind increasing UK house prices, rising at their fastest rate for 15 years according to Halifax. 2022 sees the biggest one-year cash rise recorded in almost 40 years of the lender’s index history.
House prices continue to defy the economic climate and growing pressure on household finances caused by surging inflation and a steady rise in energy bills and borrowing costs.
Since the first lockdown some two years ago, the value of an average UK home has increased by over £43,500 to around £280,000, representing an 18% rise. Detached homes have seen the greatest rise of 21% in what is dubbed by the industry as ‘the race for space’. Over the year alone to March 2022, Halifax reports an increase of 10.8%, with Nationwide citing 14%. Although this is the eighth consecutive month for growth, several forecasters regard this as the peak for property values, with a significant easing expected over the new few years.
Properties in small towns, villages and the countryside, as well as by the sea, remain popular. Rightmove believes there are twice as many buyers as sellers at present.