Property industry reaction to news that house prices went up 10.9% in the year to February
The industry has been reacting to two price indexes released yesterday by the Office for National Statistics.
They were published on the day it was announced that inflation has taken hold in the UK, with overall the cost of living going up by 7% in the year to March.
This can only get worse as fuel, heating and food price hikes feed through, and we can expect the March and April ONS data to reflect the growing effect on consumer behaviours.
Property cannot be immune from these changes and whilst it may continue for a while to defy the laws of financial gravity, it is only a matter of time before the heat comes out of the markets.
The ONS House Price Index for February 2022 reports that:
UK average house prices increased by 10.9% over the year to February 2022, up from 10.2% in January 2022.
The average UK house price was £277,000 in February 2022, which is £27,000 higher than this time last year.
Average house prices increased over the year in England to £296,000 (10.7%), in Wales to £205,000 (14.2%), in Scotland to £181,000 (11.7%) and in Northern Ireland to £159,000 (7.9%).
London continues to be the region with the lowest annual growth at 8.1%.
In its Private Housing Rental Prices Index for March 2022, the ONS says that:
Private rental prices paid by tenants in the UK rose by 2.4% in the 12 months to March 2022, up from 2.3% in the 12 months to February 2022.
Private rental prices grew by 2.2% in England, 1.6% in Wales and 2.8% in Scotland in the 12 months to March 2022.
The East Midlands saw the highest annual growth in private rental prices (3.8%), while London saw the lowest (0.4%).
To read industry reaction to these statistics please click here
Source: Property Industry Eye