"Lifestyle choices and the requirement for more spacious properties that deliver good working-from home conditions are encouraging buyers to reassess their opportunities."
The average price paid for a home in England and Wales in April 2022 was £372,436, up some £3,600, or 1.0%, on the average price paid in March. This sets yet another new record level for England and Wales – and for the sixth time in the last seven months, underlining the recent strength of the market. Prices are now some £35,000, or 10.4%, above April 2021 levels, and show a 2.4% increase over March 2022’s revised annual rate of 8.0%.
All ten GOR areas have seen an increase in their annual rates of growth, compared to the previous month.
In the top spot is Wales, a position it has held for nine months, where annual price growth is 10.9%.
Wales has been assisted in maintaining its top position in the league table this month by the 20.9% increase in prices recorded in Swansea, the highest growth rate of all the 110 unitary authorities / metropolitan counties throughout England and Wales.
Notably, the GOR area with the largest increase in its growth rate is Greater London, up from 5.5% last month, to 9.9% this month. This is the highest growth rate seen in Greater London since June 2016.
The second-highest increase is in Yorkshire and the Humber, where rates have increased from 1.1% to 4.6%, although the region remains at the bottom of the price growth league table. The area with the lowest increase in rates over the three months is the East of England, with an increase of 0.6% in its rate of 6.9%, up from the 6.3% recorded last month.
Richard Sexton, director at e.surv, commented: “This month’s data tells the story of the post pandemic race for space over the last year and the more recent demand for properties that fulfil the demands of hybrid working.
“If we look first at the annual trend, we see Wales remains the area with the highest annual growth rate, a position it has held for nine months. The demand for more rural living has underpinned this. Lifestyle choices and the requirement for more spacious properties that deliver good working-from home conditions are encouraging buyers to reassess their opportunities.
“However, if we examine the monthly performance, Greater London emerges as the area with the largest increase in its growth rate, up from 5.5% last month, to 9.9% this month. We mentioned in our last index that this change was underway, arguably the result of a renewed need for properties that were well connected to London.
“As a result, nationally, the average price paid for a home in England and Wales in April 2022 was £372,436, up some £3,600, or 1.0%, on the average price paid in March. This sets yet another new record level for England and Wales. Prices are now some £35,000, or 10.4%, above April 2021 levels, and show a 2.4% increase over March 2022’s revised annual rate of 8.0% for homes bought with cash or with a mortgage.
“It may be tempting to assume that higher interest rates will impact homebuyers’ aspirations, but rates remain comparatively low and property remains a keen investment too as inflation puts pressure on equities and other asset classes. There is still too little of the right kinds of property available and this will continue to support growth as people reflect and act upon their aspirations for the future and what that means for where they need to live.”
