Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
UK house prices rose at their fastest annual pace since 2007 in February, the Halifax house price index showed Monday.
Monthly house price growth was 0.5% in February, picking up pace from January's 0.3% growth. Market consensus, however, had predicted 1.1% growth, according to FXStreet.
Annually, prices were up 11% in February, in line with market predictions.
‘This was an eighth successive month of house price growth, as the resilience which has typified the market throughout the pandemic shows little sign of easing. Year-on-year prices grew by 10.8%, the fastest pace of annual growth since June 2007, pushing the average house price up to another record high of £278,123,’ Halifax Managing Director Russell Galley said.
The average UK house price stood at £276,759 in January.
‘Two years on from the start of the pandemic, average property values have now risen by £38,709, or 16%, since February 2020. Over the last 12 months alone house prices have gained on average £27,215. This is the biggest one-year cash rise recorded in over 39 years of index history.’
Looking ahead to the rest of 2022, Galley said house price growth looks set to ease as demand will be clipped by surging oil and gas prices.
‘This will add to the squeeze on already stretched household incomes. While increases in bank rate look likely in the near term, the extent of the rises will depend on how it affects prices and companies approaches to pay over the months to come,’ he added.
Copyright 2022 Alliance News Limited. All Rights Reserved.