House prices reach a new record high in August

Published 7th of September, 2022

The Halifax released its house price index for August today

What the Halifax said

Average house price £294,260

House prices rise by 0.4% or £1,087 in August

Annual house price inflation 11.5%

Twindig Take

House prices keep rising despite the market trying to talk them down. Many commentators are saying that increasing energy prices and mortgage rates will bring an end to house price rises, but the house prices themselves are not listening.

The Halifax House Price Index bounced back from a slight decline of £413 in July to post a gain of £1,087 in August which led to a new record high for UK house prices.

We expect that energy cost and mortgage rate headwinds will increase in the coming months, but for now, the housing market is taking them in its stride and the newly appointed Prime Minister, Liz Truss, will be keen to help where she can with living costs. Help with fuel bills and a raft of tax cuts could boost the optimism of UK households and underpin further house price growth.

We must also remember that around 80% of those with mortgages are on fixed-rate deals and are therefore shielded from interest rate rises until their current mortgage deal expires.

Looking into the Halifax data, annual house price inflation in Wales is top of the table at 16.1% its strongest since early 2005, and at the bottom of the table, house price inflation in London at 8.8% is its highest for more than six years. House price trends across the country remain robust.

Anthony Codling
CEO, Twindig

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