UK HPI: April figures reveal 12.4% annual increase

The latest UK House Price Index for April 2022 has been published.

April data shows  on average that house prices have increased by 1.1% since March 2022 and there has been an annual price increase of 12.4%, making the average property in the UK now valued at £281,161.

In England, house prices have risen by 0.8% since March 2022 with an annual price rise of 11.9% taking the average property value to £299,249. London shows, on average, house prices have risen by 1% since March 2022, with an annual price rise of 7.9%, which takes the average property value to £529,829. Wales however, shows on average house prices have risen by 2.2% since March 2022. An annual price rise of 16.2% takes the average property value to £211,990 in Wales.

Average price by property type for England

Average price by property type for Wales 

Nathan Emerson, Propertymark CEO, said: 

“The cost-of-living pressures will inevitably start to show up in the housing market, however, our member agents are saying buyers continue to outnumber available properties by around 10 to 1, and that 80% of accepted offers are at or over asking prices.

Mortgage rates are rising but from an historically low base so we are not seeing a major impact just yet. It looks likely that there will be more increases in the coming months so there will be buyers who may want to enter the market before rates go even higher. That’s going to continue to fuel demand and keep sold prices well up year-on-year for a little while yet.”

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.”

Sarah Coles, senior personal finance analyst, Hargreaves Lansdown, commented:

“House prices have only risen faster than this once since the onset of the pandemic, and that was in the frantic rush of June 2021 when the stamp duty holiday’s most generous period was coming to an end. It has pushed house prices to an incredible new high. Meanwhile, homeowners are benefitting from one of the side-effects of inflation, in that the real value of their mortgage is dropping. It fell 9,1% over the past 12 months, even before they made a single repayment.

There’s every chance we will see more weakness in the May figures. Both the Nationwide and Halifax indices now run to May, and both have fallen back. In both cases, price rises are still unusually high, but the direction of travel is worth keeping an eye on.”

Managing Director of Barrows and Forrester, James Forrester, commented:

“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.”