Saturday, May 28, 2022

House prices increase by 8.9% in year to April

House prices

The North East of England saw the highest rise where prices grew by 16.9%

UK house prices grew by 8.9% over the year to April 2021, according to the latest house price index from the Office for National Statistics (ONS).

The figure is lower than the 9.9% rise in March.

Of all the UK countries, Wales saw prices soar most significantly, recording a 15.6% increase year-on-year during the same month. The average property in the country is now worth £185,000 according to the ONS.

The North East of England saw the highest rise where prices grew by 16.9%.

In Northern Ireland, prices increased by 6% to £149,000 on average, in Scotland they grew by 6.3% to reach £161,000, and in England, prices rose by 8.9% to reach £268,00

London saw the lowest annual growth at 3.3% for the fifth month in a row, the report said.

Lucy Pendleton, property expert at estate agent James Pendleton, said prices were still being buoyed by government support measures such as furlough and the Stamp Duty Holiday – but these would soon be ending.

We’re getting so used to growth rates this high that it’s easy to forget that they are actually as rare as hen’s teeth, she said. First-time buyers will be hoping this star fades fast, and fade it must because the market is punching the top of the dial by historic standards.

A dose of economic reality is going to start featuring in our lives over the next few months in a way that has been largely absent since early last year, she said.

The mortgage lender perspective on the figures was very similar. Sundeep Patel, director of sales at specialist lender Together, said the 8.9% rise was a clear indicator of how inflated price had become in the last six months.

He added: The government’s decision to delay ‘Freedom Day’ is a clear indicator that we are still not out of the woods as far as the pandemic is concerned, but government support packages – including the Stamp Duty holiday – are not set to be extended.

With just days to go until the tax break for home buyers starts to taper off, only time will tell if the stratospheric rise of house prices will continue, Patel said.

He said: Incentives aside, there are still severe supply and demand issues to contend with in the long-term – a big headache for those already feeling priced out by the market.


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