House price growth accelerates to 12.4%: UK HPI

Average UK house prices increased by 12.4% over the year to April, up from 9.7% in March, according to the latest UK House Price Index from the ONS and Land Registry.

Related topics:  Finance News
Rozi Jones
22nd June 2022
Sold house sign
"We can expect to see UK property values continue to hold their own over the coming months, as the supply demand imbalance continues to negate any wider economic influence."

The average UK house price was £281,000 in April, which is £31,000 higher than this time last year.

Average house prices increased over the year by 11.9% in England, 16.2% in both Scotland and Wales, and 10.4% in Northern Ireland.

The South West was the region with the highest annual house price growth, with average prices increasing by 14.1% in the year to April, up from a growth rate of 10.5% in March.

The lowest annual house price growth was in London, where average prices increased by 7.9% over the year to April, up from 4.9% in March.

Michael Bruce, CEO and founder of Boomin, commented: “It’s important to remember that while sold prices provide the most concrete health check of the UK property market, they are reported on a lag.

"So while the market remains apparently unphased by a spate of base rate jumps and consequential impact this is likely to have on the spending power of UK buyers, the reality is that this declining market sentiment is yet to bubble to the surface.

"However, while these growing economic headwinds may rock the boat of house price growth, sustained and robust levels of buyer demand, coupled with a shortage of stock, are sure to prevent a significant drop.”

Managing director of Barrows and Forrester, James Forrester, said: “We can expect to see UK property values continue to hold their own over the coming months, as the supply demand imbalance continues to negate any wider economic influence.

"For every one buyer struggling with the financial task of climbing the ladder, there are three or four with a mortgage in principle and an existing property to act as financial collateral in order to fund their ongoing purchase.

"It remains an incredibly competitive market and while we’re unlikely to see these extraordinary rates of house price growth persist in the long-term, bricks and mortar continues to provide a very sound investment.”

Colin Bell, co-Founder and COO of Perenna, added: “Today’s news that the UK average house price has risen by 12.4% over the year to April 2022 will make for concerning news for first-time buyers, many of whom are already facing higher interest rates and a rising cost of living that could scupper their chances of stepping onto the property ladder.

“With the Help to Buy scheme coming to an end soon, the sector needs to rethink how it supports first-time buyers, now more than ever. Flexible long-term fixed rate mortgages offer protection from interest rate rises and they can provide a solution to some of the barriers facing those looking to buy their first home. They allow individuals to better manage their monthly outgoings, while offering the peace of mind, during this tough economic climate, that the monthly mortgage bill will remain unchanged.”

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