House price momentum maintained - another day, another high
The Halifax released their house price index for March this morning
What they said
Average UK house price £282,753
House prices have risen by £43,577 since the first lockdown
Monthly house price increase of 1.4% the largest for six months
The Halifax house price index rose in March for the ninth month in a row, the 1.4% increase in March 2022 of £3,860, an amount significantly larger than the average full-time monthly wage, was the biggest increase since September.
The annual rate of house price inflation of 11.0% is a level of house price inflation we have not seen since mid-2007.
Despite the rising costs of living and increasing mortgage rates, house prices continue to be driven and underpinned by a shortage of homes for sale - the classic more buyers than sellers pushing up house prices.
The Halifax believes, as we do, that affordability concerns are starting to move up the housing ladder. Not only is it difficult for first-time buyers to take their first step onto the housing ladder, but it is increasingly difficult for those looking to trade up as the recent levels of house price inflation have increased the distance between the rungs on the housing ladder itself.
The Halifax expects house price inflation to slow this year as the cost of living increases start to bite.
However, as costs of living rises, we may well find ourselves spending more time at home, kind of a cost of living induced lockdown, and this may keep many people running in the race for space as a result the competition for bigger homes and those with outside space may increase further.
The evidence of the race for space is clear. The Halifax reports today that over the last two years the average price for a flat has increased by 10.6% or £15,400, whereas the price of a detached property has increased by 21.3% or £77,700.
To see how house prices are performing in your area, you can read our regional house price report and to see how much your house might be worth, claim your free property logbook