The latest Halifax House Price Index (HPI) has been released.
Halifax’s June HPI reveals that house prices were up 13% in a year, to a record high of £294,845. This is the fastest rate of price increase the property market has seen since 2004.
House prices increased by 1.8% in June, the twelfth consecutive monthly rise, with Northern Ireland continuing to post the strongest growth in the UK.
Russell Galley, Managing Director, Halifax, said:
“The UK housing market defied any expectations of a slowdown, with average property prices up 1.8% in June, the biggest monthly rise since early 2007. This means house prices have now risen every month over the last year, and are up by 6.8% or £18,849 in cash terms so far in 2022, pushing the typical UK house price to another record high of £294,845.
The supply-demand imbalance continues to be the reason house prices are rising so sharply. 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.”
Richard Eagling, personal finance expert at NerdWallet said:
“All the speculation is that the UK property market is on the cusp of a slowdown. These figures continue to defy these suggestions, and they are unlikely to encourage prospective first-time buyers. Month-on-month house price increases are still resolutely in double figures, while aspiring homeowners also have rising interest rates and inflation to deal with, which affects how much they can borrow and save respectively.
The signs of a cooling market may start to appear in the coming months, but for first-time buyers, these are unlikely to be apparent for some time. However, being proactive and weighing up all available options is a good place to start. Consequently, they will strengthen their buying position if house prices decline in the future.”
Tom Brown, Managing Director of Real Estate at Ingenious, said:
“Whilst interest rates and inflation present an ongoing threat to the wider economy, we continue to see UK residential property markets remaining robust, resilient and performing well. The picture is not uniform across the country and across all price points however, requiring expertise to interpret the headline numbers. For example, city centre flats in some locations don’t always reflect the same fundamentals as people search further afield for more outside space, homes with gardens, practical workspaces and quality infrastructure. When analysing residential opportunities, it is key to understand the subsectors and the regions in which they are located as it can be quite misleading to look at the market too broadly.”
