House prices up 14.3%, according to Nationwide
31st March 2022 07:52
by Myron Jobson from interactive investor
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interactive investor comments on the latest Nationwide House Price Index.
- Annual house price growth increased to 14.3%, from 12.6% in February, according to the latest Nationwide House Price Index
- The price of a typical UK home climbed to a new record high of £265,312, with prices increasing by over £33,000 in the past year
- Prices are now 21% higher than before the pandemic struck in early 2020
- Wales remained the strongest-performing region in Q1 2022, while London remained the weakest
- Detached properties have increased by nearly £68,000 since onset of pandemic, while average flat prices are up £24,000.
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Another month, another house price index, the same conclusion: there has been no let-up in demand for homes, which far outstrips supply – thus driving the price of a typical UK home to a new record high.
“The figures show that the post-pandemic dip in house prices is still yet to materialise. Competition is rife in this red-hot property market, and although life is starting to feel close to normal, people are still continuing to re-consider their priorities and where they want to live.
“Despite London recording growth in the average house price of 7.4% in the first three months of this year compared to the same period in 2021, the capital is lagging behind the rest of the UK as demand for spacious, yet affordable, homes remains robust. The winners have been Wales, the South West and East Anglia regions which have seen average house prices soar by 15.3%, 14.4% and 14.2, respectively, in Q1 year-on-year.
“But it is surely a matter of time until we see a slowdown in house price growth. Low housing inventory could have a cooling effect on the housing market as buyers wait for more stock to become available before making a move. The escalating cost of living crisis eats into disposable income, making it harder to save for a deposit, while the recent hikes in interest rates and the likelihood of more in the near future has driven up the cost of mortgages. This is all happening at a time when house prices have gone through the roof.
“One of these factors alone might not be enough to stifle the runaway housing market, but they could make a serious dent combined.”
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