Home prices have skyrocketed over the past year at the fastest pace since 2004 as the UK real estate market continued to disobey expectations of a downturn.
Home price inflationhas reached 13% in the last 12 months, with average home prices reaching a record high of £ 294,845, Halifax Bank reported. In June alone, prices rose 1.8%, the fastest monthly rise since 2007.
Despite rising interest rates, real estate prices have risen sharply, raising concerns that housing isbecoming more and more affordablemany parts of the country. and.
Halifax recorded price increases in all parts of the UK, with Northern Ireland showing the greatest inflation. Average home prices rose 15.2% annually, surpassing Wales, where prices rose 14.3%.
In England, the Southwest recorded the largest increase at 14.2 percent.
In Scotland, average home prices have exceeded £ 200,000 for the first time.
Halifax said it expects price increases to slow in the coming months.
Russell Galley, Managing Director of Halifax, said: 22} "This is because home prices have risen monthly since last year, rising 6.8% or £ 18,849 on a cash basis so far in 2022, pushing typical UK home prices to a record high of £ 294,845.
"The reason home prices are so sharply rising is the continued imbalance between supply and demand.
" Demand is still strong, but activity levels are high. It's slowing to match pre-Covid averages.-The inventory of properties for sale remains very low.
"So far, real estate prices have been largely due to pressure on living costs. Seems to be isolated.
"This is partly due to rising living costs now. Most felt by low-income people who are less willing to buy and sell homes.
"In contrast, high-income earners are likely to be able to use the additional funds saved during the pandemic, and according to the latest industry data, mortgage lending has been since September last year. It is increasing at the highest price.
"Of course, the housing market remains unaffected by the harsh economic environment.
" But for now, as in the last two years. Continues to show a unique combination of factors that influence prices.
"One of these is still a big change in demand. Average prices for single-family homes have been apartments over the past year. It is rising almost twice as much as it is toward larger properties (13.9% vs. 7.6%).
"But the increased pressure on households and rising interest rates due to inflation are affordable Given the impact on prices, it should have an even greater impact on the housing market. "
He added: "So it may be slower than previously expected, but slowing house price increases should still be expected in the coming months."
June average, according to Halifax. House prices and annual increases are as follows:
-East Midlands, £ 241,875, 12.6%
-Eastern England, £ 341,544, 12.4%
-London, £ 547,031, 7.1%
-Northeast, £ 169,760, 11.0%
-Northwest, £ 224,941, 12.0%
-Northern Ireland, £ 187,833, 15.2%
-Scotland, £ 201,549, 9.9%
-Southeast, £ 396,173, 11.9%
-Southwest, £ 308,128, 14.2%
-Wales, £ 219,281, 14.3%
-West Midlands, £ 247,130, 11.5%
-Yorkshire and the Humber, £ 203,630, 10.3%