How does rising inflation affect house prices?

How does rising inflation affect house prices?

We take a quick look at how rising inflation can affect house prices

  • Consumer price inflation (CPI) has risen to 5.4% in the 12 months to December 2021. This is the highest rate in 30 years, but is expected to fall back after an April peak (ONS).
  • Energy costs are a major component of price rises and this is likely to turn the spotlight on energy efficient homes.
  • The key driver of house prices and affordability is interest rates, which are expected to remain low in the long term, despite a small rise to 0.5% widely expected in February.
  • Other drivers of demand, which are expected to continue, are lifestyle changes and deposits saved during the pandemic.
  • Source: Dataloft, ONS, Bank of England


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This data shows a clear north–south split in UK housing supply. Homes for sale are rising across London and the South, while much of the North is seeing stock fall. The contrast raises questions about affordability, confidence, and whether higher supply in the South could limit house price growth into 2026.

An attractive and well-presented 2-bedroom end terrace, ideally positioned in central Attleborough. Recently redecorated throughout, the property offers a spacious lounge with French doors to a 30ft enclosed garden, a fitted kitchen, modern bathroom, and allocated parking, combining comfort with convenience.

Over the past three years, the number of homes for sale has surged dramatically, far outpacing the national rise. Yet, despite the increase, supply remains tighter than in past downturns. With more choice for buyers, success now depends on smart, realistic pricing that stands out in a competitive market.

Located in the popular Constable Close off London Rd, Attleborough, this 3-bedroom semi-detached home offers a lounge off the entrance hall, fitted kitchen/diner, refitted bathroom, garage, and west-facing garden backing onto a play park, the property is offered with no onward chain.