Halifax has published its latest House Price Index for March.
The index shows that house prices increased by 1.4% in March, the largest monthly increase in six months, climbing by 11% month-to-date. Average house prices are now at their highest since mid-2007.
The average house price, according to the Halifax HPI, now stands at a record high of £282,753. In the two years since the onset of the pandemic, prices have risen 18.2%, or £43,577, and in that time, flats have increased by 10.6% (£15,404) and detached houses by 21.3% (£77,717).
Nathan Emerson, Propertymark CEO, commented:
“Our latest Housing Market Report found that the level of housing supply is still 32 per cent lower than before the pandemic and demand is up 134 per cent. There are no signs that this trend is set to change in the near future meaning the market will continue to remain competitive with homes selling quickly. The cost of living crisis will undoubtedly show its effects in the market in the coming months, with many households facing increasing energy bills, we could also start to see more efficient homes start to hold premiums over older or less efficient homes.”
Managing Director of Barrows and Forrester, James Forrester, commented:
“Buyer demand remains extremely high and with a lack of stock to meet this demand, there’s no end in sight when it comes to the current state of the market. Even fears around the increasing cost of living and a number of interest rate increases are yet to make a dent and so the outlook for the year ahead is a positive one where market values are concerned.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“A monthly look at house price growth is far too volatile a metric to judge wider market health upon. However, yet another double digit annual increase is the real proof in the pudding and demonstrates a market that is flying high, even when compared to the strong performance posted this time last year.”
Director of Henry Dannell, Geoff Garrett, commented:
“Despite a string of interest rate increases and the inevitable impact this has had on monthly mortgage costs, the nation’s homebuyers are seemingly undeterred and continue to flood the market at mass. However, the general consensus is that this squeeze on mortgage affordability coupled with the increase in living costs will start to cool the current rate of house price growth as the year goes on.
While this may not be substantial enough to reverse the upward house price trends being seen at present, it’s almost certainly going to slow what have been some meteoric rises in recent months.”
Sarah Coles, senior personal finance analyst, Hargreaves Lansdown commented:
“House prices are up an average of £28,113 in a year, and £43,577 in two years, as demand continued to outstrip supply, and buyers chased after the few properties on the market. For those who are considering trading down, or are happy staying where they are, it makes them feel wealthier, and provides an element of comfort when everything else in life is conspiring to make them less well off.
Runaway house prices are also causing problems for second steppers, because the price of houses is stretching way ahead of flats. The average price of a flat is up just £15,404 in a year while the average detached house rose in price by £77,717. It means it takes an enormous stretch to get from one to the other.”
Walid Koudmani, chief market analyst at financial brokerage XTB commented:
“The Halifax HPI index continued to show the recent trend of rising prices across sectors with another increase in house prices and monthly house price growth of 1.4%, the biggest increase for six months. While other sectors like energy and food have been consistently increasing, the housing market may begin to suffer a slowdown in demand if the current rate of increase continues as more consumers start to struggle to enter the market. On the other hand, demand at current levels remains high and could sustain a continuation of this trend despite measures by the central bank designed to mitigate inflation.”
