UK house prices jump to another record high – Halifax

by | Jul 7, 2022

Share this article

UK house prices rose in June at their fastest monthly pace since early 2007 despite the cost-of-living crisis, according to a survey released by Halifax on Thursday.
Prices rose 1.8% from May, when they increased 1.2%. On the year, house prices were up 13% in June, versus a 10.7% jump the month before. The average house price pushed up to another record high of £294,845.

The annual growth rate was the highest since late 2004.

Russell Galley, managing director at Halifax, said the UK market had continued to defy any expectations of a slowdown.

“The supply-demand imbalance continues to be the reason house prices are rising so sharply,” he said. “Demand is still strong – though activity levels have slowed to be in line with pre-Covid averages – while the stock of available properties for sale remains extremely low.

“Property prices so far appear to have been largely insulated from the cost of living squeeze. This is partly because, right now, the rise in the cost of living is being felt most by people on lower incomes, who are typically less active in buying and selling houses. In contrast, higher earners are likely to be able to use extra funds saved during the pandemic, with latest industry data showing that mortgage lending has increased by the highest amount since last September.”

Northern Ireland once again topped the table for annual house price inflation, at 15.2%, with an average price of £187,833. London, meanwhile, continued to lag behind other regions, with house price inflation of 7.1%, although the average price of £547,031 means it remains by far the most expensive place in the UK to buy a home.

Andrew Wishart, senior property economist at Capital Economics, said: “The substantial rise in the Halifax house price index in June was surprising given the softening in the Nationwide figures in the same month, and the deterioration in leading indicators of housing market activity.

“As such, the 18-year high in house price inflation of 13% y/y is likely to mark the peak before house prices start to decline next year.”

Share this article

Related articles

UK inflation hits 40-year high of 10.1%

UK inflation hits 40-year high of 10.1%

Higher food prices helped push up inflation in September, official data showed on Wednesday, to a record 10.1%. According to the Office for National Statistics, the consumer price index rose by 10.1% in the 12 months to September, compared to August's rate of 9.9%....

Reports of delay to bond sale ‘inaccurate’ – BoE

Reports of delay to bond sale ‘inaccurate’ – BoE

The Bank of England appeared to deny reports on Tuesday that it wanted to delay selling billions of pounds of government bonds. The central bank acquired £838bn of gilts during its quantitative easing programme. It had intended to start selling them on 6 October, but...

Trending articles