Marketing No Comments

Nationwide reveals April house price index

Annual house price growth has slowed down slightly in April, but has remained in double digits for the 11th time in the past 12 months, the latest Nationwide House Price Index has today revealed.

UK house prices grew by 12.1% year-on-year in April, down from 14.3% in March. Prices rose by 0.3% month-on-month, after taking account of seasonal effects – the ninth consecutive monthly increase, though this is the smallest monthly gain since September last year.

Robert Gardner, Nationwide’s chief economist, pointed out that housing market activity has remained solid with mortgage approvals continuing to run above pre-COVID levels.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

“Demand is being supported by robust labour market conditions, where employment growth has remained strong, and the unemployment rate has fallen back to pre-pandemic lows. With the stock of homes on the market still low, this has translated into continued upward pressure on house prices,” he said.

However, Gardner was surprised that conditions have remained so buoyant, given mounting pressure on household budgets, which has severely dented consumer confidence.

“Consumers’ expectations of their own personal finances over the next 12 months have dropped to levels last seen during the depths of the global financial crisis more than a decade ago. Moreover, housing affordability has deteriorated because house price growth has been outstripping income growth by a wide margin over the past two years, while more recently, borrowing costs have increased,” the economist said.

“Risks to growth have been mounting for some time, so it’s unsurprising to see prices moderating slightly in this latest data,” Nicky Stevenson, managing director at national estate agent group Fine & Country, said. “Whether this is a harbinger of things to come remains unclear and experts continue to debate whether the fundamentals of the market can continue to support double digit growth for much longer.”

According to Gardner, however, it is expected that the housing market would continue to slow down in the coming quarters.

“The squeeze on household incomes is set to intensify with inflation expected to rise further, perhaps reaching double digits in the quarters ahead if global energy prices remain high. Moreover, assuming that labour market conditions remain strong, the Bank of England is likely to raise interest rates further, which will also exert a drag on the market if this feeds through to mortgage rates,” he said.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Andrew Montlake agreed that the slowing in growth seen in April is likely to continue throughout 2022.

“We are now seeing some real signs of a storm blowing in. Inflation and the cost-of-living crisis, together with the continuing war in Ukraine, are making buyers more cautious and are creating a nervousness among lenders that may see them cut their cloth accordingly in the second half of this year,” he said.

“The rate of price growth is likely to continue to fall during 2022 but the drastic lack of supply could prevent prices from falling,” Montlake added.

“A slowdown in the rate of price growth was always on the cards given the huge spike in the cost-of-living and higher mortgage rates,” Dominik Lipnicki said. “The lack of stock will help support prices, even if the rate of growth continues to slow.”

Tomer Aboody, director of property lender MT Finance, said that with interest rates going up, buyers are rushing to secure a mortgage now before further increases are implemented.

“As rates rise and inflation increases, a lack of confidence is likely to start to filter through, leading to a slow calming of the market in coming months,” he added.

Meanwhile, a survey of around 3,000 consumers across the UK, conducted online by Censuswide on behalf of Nationwide, seems to explain why market activity remained buoyant despite rising costs.

Almost four in 10 (38%) respondents stated that they were either in the process of moving or considering a move.

This proportion was particularly high in London, where almost half said they were moving or considering a move. Even in Wales, where the share was lowest, more than 25% were either moving or considering a move. This is very high, according to Gardner, given that only around 5% of the housing stock turns over in a typical year in the UK.

The survey also showed that the proportion of people considering a move was highest among private renters (45%), those living with family (44%), those owning a home with a mortgage (42%), and those owning their property outright (30%).

“Interestingly, despite mounting pressure on household finances, the share of people moving or considering a move was higher than during the height of the pandemic in April last year across all tenure types, as shown below,” Gardner observed.

The survey results also suggest that shifts in housing preferences as a result of the pandemic are continuing to support housing market activity, though to less of an extent than at this time last year.

Around a quarter (24%) of those moving or considering a move said that they needed to move to a larger property, and for most age groups, a majority are still looking to move to less urban environments.

However, the proportion of those citing a desire to get away from city life, or gain access to a garden or outside space has declined substantially to 12% and 15% respectively, down from 25% and 28% in April 2021.

For most movers and potential movers, the majority of those surveyed are looking to trade up – the exception being among those aged 55 and above, where nearly 40% are looking to move to a smaller property compared to just 7% looking to move to a larger property.

Financial reasons are cited as a factor motivating a move by a sizeable minority, with 17% of those moving or considering a move saying they were doing so at least in part to reduce spending on housing, either by moving to a different area and/or by moving to a smaller property.

Iain McKenzie, chief executive at The Guild of Property Professionals, stated that the demand to move, combined with solid mortgage approval numbers, will help prop up house prices.

“Across all ages, movers are still looking for properties away from urban environments, and the amount of people working from home will keep prices higher in commuter areas,” McKenzie said.

By Rommel Lontayao

Source: Mortgage Introducer

Discover our Mortgage Broker services

Marketing No Comments

House prices set to rise further based on transactions currently underway

UK house prices look set for new record highs in the coming months despite the cost of living squeeze.

Residential property prices have continued soaring in recent months despite 30-year high inflation and a worsening cost-of-living crisis, and the signs are that they will rise further in the coming months in light of the ongoing supply-demand imbalance.

The imbalance between supply and demand will continue to drive prices upwards through the spring despite growing pressures on household finances and rising borrowing costs, with the average property price in England and Wales set to hit a new record high of £389,712 in June 2022, according to the reallymoving House Price Forecast.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

The supply crunch, which has seen the volume of properties for sale plummet to record lows, combined with unseasonably strong buyer demand, is preventing sale prices from falling, as would normally be expected when households experience sudden financial pressure.

Reallymoving captures the purchase price buyers have agreed to pay when they search for conveyancing quotes through the comparison site, typically 12 weeks before they complete. This enables reallymoving to provide a three – month house price forecast that historically has closely tracked the Land Registry’s Price Paid data, published retrospectively.

Based on deals already agreed between buyers and sellers, prices will rise by 4.7% in April and 6% in May before slowing to growth of 1.3% in June – a direct result of buyer competition for a limited supply of homes during the early months of the year.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

However, the market is expected to flatten later this year as inflation bites further and mortgages become more expensive.

Rob Houghton, CEO of reallymoving, commented: “House price forecasts for the coming quarter suggest we’re heading into a period of strong price growth, but when taken in the wider context what we’re actually seeing are prices being inflated by a severe supply squeeze. This is forcing the market upwards, masking the impact of inflation and rising costs on household budgets which we would normally expect to rein in price growth.

“Having less money in their pockets will ultimately deter people from taking on more debt as they move up the ladder, and at some point in the near future this will slow house price growth. Much will depend on the volume of new listings we see coming onto the market and the speed at which lenders push up the price of fixed rate mortgages.”

By MARC DA SILVA

Source: Property Industry Eye

Discover our Mortgage Broker services

Marketing No Comments

House prices to reach record high, shows Reallymoving data

The average house price in England and Wales is set to continue to rise over the next quarter to a new record high of £389,712 in June 2022, according to Reallymoving’s March House Price Forecast.

The forward-looking index, which captures the purchase price buyers agree to pay when they search for conveyancing quotes, suggests that the imbalance between supply and demand will continue to drive prices upwards through the spring despite growing pressures on household finances and rising borrowing costs.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

The supply crunch, which has seen the volume of properties for sale plummet to record lows, combined with unseasonably strong buyer demand, is preventing sale prices from falling, Reallymoving’s data found.

Based on deals already agreed between buyers and sellers, it predicted that prices will rise by +4.7% in April and +6.0% in May before slowing to growth of +1.3% in June.

The rises are said to be a direct result of buyer competition for a limited supply of homes during the early months of the year.

After the Bank of England increased the base rate 0.75% last month, the current run of house price growth is likely to slow later this year, according to the data.

House prices have risen by more than 10% compared to this time last year and are £66,000 higher than when the pandemic started.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

For first-time buyers that are tempted to wait for a decline in house prices, Reallymoving says buying with a long-term view will help ride out any short-term fluctuations and locking in a fixed-rate deal will help save money in the long run.

Meanwhile, for those looking to downsize to a smaller property as the cost living cost continues to rise, data suggests releasing equity now will help to secure the maximum price for the property.

Reallymoving chief executive Rob Houghton says: “House price forecasts for the coming quarter suggest we’re heading into a period of strong price growth, but when taken in the wider context what we’re actually seeing are prices being inflated by a severe supply squeeze.”

Houghton explains: “This is forcing the market upwards, masking the impact of inflation and rising costs on household budgets which we would normally expect to rein in price growth.”

“Having less money in their pockets will ultimately deter people from taking on more debt as they move up the ladder, and at some point in the near future, this will slow house price growth. Much will depend on the volume of new listings we see coming onto the market and the speed at which lenders push up the price of fixed rate mortgages,” he adds.

By Becky Bellamy

Source: Mortgage Finance Gazette

Discover our Mortgage Broker services

Marketing No Comments

UK housing market remains solid despite economic worries – RICS

The UK housing market had solid growth in March as the number of homes listed for sale rose despite worries about higher living costs and interest rates, a survey showed.

The Royal Institution of Chartered Surveyors’ (RICS) residential market survey found that +8% of estate agents had a rise in fresh listings and that new buyer enquiries rose with +9% of respondents reporting an increase. This was the first time since the start of the pandemic that supply and demand had been so closely in line.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

The number of agreed sales was unchanged from February at +9%, showing a steady increase in transactions. But the average number of properties on agents’ books stayed close to historic lows. RICS’ figures show the difference between agents reporting increases and declines.

Agents were moderately optimistic about the outlook with +16% of respondents expecting activity to increase over the next three months and with agents expecting volumes to be broadly stable over the coming year.

House prices continued their upward trend with +74% of agents reporting increases, in line with the trend over the past year. Northern Ireland, Wales and northern England had the biggest increases.

Respondents expect prices to keep rising over the next three and 12 months despite worries about higher living costs and potential interest rate increases designed to combat inflation. In the rental market landlord instructions rose for the first time since July 2020 but demand still outstrips supply and rents are expected to rise.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Simon Rubinsohn, RICS’ chief economists, said: “Despite mounting concerns about both the macro environment and the war in Ukraine, for now the feedback to the RICS survey shows the housing market remains resilient. Rising interest rates have begun to push up the cost of mortgage finance but debt servicing remains low in a historic context which helps to explain why the new buyer enquiries indicator remains in positive territory.”

The UK’s housing market boomed during the pandemic, driven by a temporary cut to stamp duty and households reassessing their property needs with the ability to work from home. Activity has reduced from the frenzy of 2021 but many experts have been surprised by how long the market has stayed busy.

Rubinsohn said: “It is encouraging that a little more stock appears to be returning to the market. This is still early days in that inventory remains not far off historic lows but if the trend continues, it could help to create a better balance between supply and demand. That said, there is little evidence of this outcome materialising in the 12-month metrics which continue to point to further increases in prices and a flatter pattern in transactions.”

By Sean Farrell

Source: ShareCast

Discover our Mortgage Broker services

Marketing No Comments

UK house price growth will continue to outpace inflation

Inflation is rising faster than wages are growing, but it will not outpace UK house price growth anytime soon, according to a major housebuilder.

In the near-term, high demand and a shortage of new properties coming onto the housing market are likely to push up house prices, and it would appear that many potential buyers have not been deterred by increasing costs.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

The ONS said increases in household and transport costs, such as electricity, gas and fuel bills, were the largest drivers in the rise of the Consumer Prices Index (CPI) measure of inflation to 6.2%, and yet Bellway, a top five UK housebuilder by number of homes built, said on Tuesday that rising house prices will continue to offset the impact of inflation.

Annual house price growth in the UK hit 12.6% in February this year, the latest data from Nationwide shows, pushing the average price of a home up more than £29,000 to £260,230.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

According to the lender, “a combination of robust demand and limited stock of homes on the market has kept upward pressure on prices.”

Despite his short-term house price growth expectations, Jason Honeyman, chief executive at Bellway, accepts that rising costs is likely to cause demand for property to eventually slow in the medium- to longer-term.

“I worry about that cost-of-living increase impacting people’s appetite or ability to buy,” he said.

“It’s inevitable that the market will moderate, but I don’t think it will crash or grind to a halt,” he added.

By MARC DA SILVA

Source: Property Industry Eye

Discover our Mortgage Broker services

Marketing No Comments

Buyer demand remains unseasonably high across the UK

Residential property prices in the UK have increased to £245,200 as greater demand from buyers amid constrained stock levels continues to place upward pressure on prices.

According to the latest data from Zoopla, there was strong property price growth across all regions of the UK, with the average price of a home rising 8.1% on the year, up from 4.2% last February.

The property website said demand remains unseasonably strong across the country, with demand for family houses more than twice as high as usual for this time of the year.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

Gráinne Gilmore, head of research at Zoopla, said: “Demand is strongest for family houses, indicating a continued appetite for additional internal and external space. But demand is up across nearly all property types, indicating that those thinking of moving are in pole position to sell.”

Zoopla said new listings of homes for sale rose 5% above the five-year average, with listings for sale across the average estate agency branch up 3.5% in the 28 days to 20 March.

The stock of homes available to buy was 42% below the five-year average, compared to 47% lower in December last year.

But, despite new supply levels increasing this year, it will not be enough to reverse the overall supply-demand imbalance, Zoopla said.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Sales agreed in the first quarter of this year jumped 38% compared to Q1 2020, according to Zoopla’s monthly house price index.

It expects the trend to contine in the coming months, as price growth and high demand triggers more homeowners to make a move.

Market activity is also being driven by a bounce back in demand in urban areas since the start of 2022.

At a regional level, Wales has registered the highest annual regional price growth for the 12th consecutive month, at 11.8%, while this has also contributed to 35% price growth over the last five years in the nation.

Despite this, Zoopla anticipates price growth to slow during the second half of 2022 as the surging cost of living, and rising mortgage rates apply a brake to the market.

Gilmore added: “Given the tick up in new listings of homes for sale, there is now a wider choice of homes for movers and all buyers. The increased economic headwinds, including the rising costs of living and increasing mortgage rates, property price growth will start to moderate as we move through the second half of 2022.”

By MARC DA SILVA

Source: Property Industry Eye

Discover our Mortgage Broker services

Marketing No Comments

House prices hit record high but slowdown looms

Scottish average property prices increased by almost 10% in 2021, led by growth in the cost of larger homes, according to an analysis of the latest data by property firm DJ Alexander.

The estate agency, part of the Lomond Group, said that between January 2021 and December 2021 average property prices in Scotland rose by 9.5%, led by gains in Edinburgh.

The Scottish capital experienced the largest average increase at 10.6% with Aberdeen the lowest among Scotland’s largest cities at just 2.2% with Dundee up 9.5% and Glasgow increasing 8.3%.

However, it is the increase in average prices for detached, and semi-detached homes which is most striking with double digit growth in all cities with the exception of Aberdeen whose detached homes increased by a healthy 8.1% – an increase of £27,318 – but were lower than the rest of Scotland due to continued uncertainty over the future of the oil and gas sector.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

Detached homes across Scotland increased by an average of 15.4% which is a £44,182 increase on 2020. However, Edinburgh topped the market overall with an average annual increase of £110,181 in the price of detached homes which equates to a rise of 18.3% year-on-year.

Glasgow had the second highest increase with a rise of 17.8% which is an average £67,067 higher over the year with Dundee increasing 15.1% which is £41,843.

Semi-detached and terraced properties experienced strong double-digit growth in Edinburgh and Glasgow, while Dundee’s largest properties also recorded high increases over the year. Flats had the lowest growth with a 4.1% increase in average prices across Scotland ranging from a rise of 7.8% in Edinburgh to a fall of 0.9% in Aberdeen.

David Alexander, chief executive officer of DJ Alexander Scotland, commented: “These figures reflect a very mixed picture across Scotland. While it is positive that there has been an overall substantial rise in average prices in the country it is clear that there are major differences in the performance of the market both geographically and by property type.

“Aberdeen remains flat and is unlikely to improve until there is some clarity over the future of the oil and gas industry. However, even despite the economic uncertainty the strength of pricing for the largest homes in Aberdeen remains the strongest sector even in the weakest city market.”

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

He continued: “Edinburgh’s continuing popularity is remarkable and the increase in average pricing for detached houses is extraordinary. An increase of £110,000 on average for detached properties in just one year is unprecedented and, I would have to say, unsustainable in the long term. The buoyancy of the market has been unbelievable and the money available to pay these substantial amounts for property shows that the strength of Edinburgh’s property market has both deep roots and deep pockets.

“Glasgow and Dundee have also had a remarkable year with larger properties producing outstanding growth in 2021. With Edinburgh and Glasgow both having a near 20 per cent rise in average property prices for detached and Dundee at just over 15 per cent we can see that the top end of the market remains strong across Scotland which is a welcome outcome.”

Alexander added: “I believe that these figures represent a peak since, for me, there is really only one way for them to go in the next couple of years. There won’t be a sudden fall or drop in the market as the number of properties available remains woefully low, but I don’t think that substantial increases of this scale are sustainable in the medium to long term.

“I think we will continue to have positive growth but nearer the historic levels of between three and five per cent a year with outlier pockets of stronger activity continuing to surprise and make headlines but overall, a steadier market.”

By MARC DA SILVA

Source: Property Industry Eye

Discover our Mortgage Broker services

Marketing No Comments

Housing market upbeat despite cost of living squeeze

The UK housing market remained buoyant in February, industry research showed on Thursday, despite rising interest rates and the growing cost of living crisis.

According the latest UK Residential Market Survey from the Royal Institution of Chartered Surveyors, a net balance of 17% of respondents said they had seen an increase in new buyer enquiries in February, the sixth consecutive month of increases.

The number of agreed sales also rose, with a net balance of 9%, the strongest reading since May 2021.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

House prices continued to rise over the month, with a net balance of 78% reporting an increase at the national level. Stock levels remained close to historic lows, however, which RICS said was a “major factor” in sustaining house price inflation.

Simon Rubinsohn, chief economist at RICS, said: “Huge clouds of uncertainty hang over the economic prospects as energy prices continue to surge and the Bank of England grapples with how to manage monetary policy in this challenging environment.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

“Despite all this, there is little evidence yet that the mood music regarding the expectations for house prices or rents is shifting. Indeed, the medium-term projections from respondents to the RICS survey are continuing to gain momentum.”

Looking to the next three months, respondents predicted that sales would increase, although at a more modest pace, with February’s net balance of 11% down on January’s reading of 20%. Sales were expected to remain on an upward trajectory over the coming year, however.

The BoE has increased interest rates twice since December, to 0.5%, as it looks to tackle soaring inflation, currently running at a 30-year high. Energy prices, meanwhile, will rise by 54% from next month, alongside a planned increases to national insurance contributions.

By Abigail Townsend

Source: Sharecast News

Discover our Mortgage Broker services

Marketing No Comments

Post-pandemic push: UK housing market reaches new highs

There’s no let-up in buyer appetite across the UK housing market, according to the latest figures, with the predicted post-pandemic dip still yet to materialise.

Another month, another house price index, and the latest Rightmove results show that things are still moving quickly in the country’s property sector.

In contrast to the ONS figures, Rightmove’s monthly indices examines asking prices rather than sold prices. It shows that prices have seen their biggest ever monthly increase, surging by 2.3% to £348,804 – a record high.

On an annual basis, sellers are looking for 9.5% more for their properties than this time last year. The good news in terms of stock levels is that seller numbers are up by 11% compared to February 2021. There’s also been an 11% rise in the number of people requesting estate agent valuations.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

UK housing market remains robust

The figures are a clear indication that the after-effects of the pandemic, and the drastic slowdown predicted by some, are yet to take effect. There is still plenty of competition among buyers and sellers, and people’s behaviours still appear to be influenced by the “new normal”.

Tim Bannister, Rightmove’s director of property data says: “The data suggests that people are by no means done with their pandemic-driven moves. Such a significant societal event means that even two years on from the start of the pandemic, people are continuing to re-consider their priorities and where they want to live.”

With news from Prime Minister Boris Johnson that the final restrictions will be lifted a month earlier than expected, there could be a knock-on effect sooner rather than later on buying and selling trends. Bannister believes that there is a new group of movers wanting to return to major cities and commuter towns.

“High demand and a shortage of available stock are supporting a rise in prices and a new record average asking price this month,” he adds. “The rising cost of living is undoubtedly affecting many people’s finances, especially those trying to save up enough for a deposit to get on the ladder or to trade up.”

Despite all this, though, demand appears to be rising across the whole of the country.

Recovery in London?

Appetite for London property has dipped in recent years, resulting in stalling house prices. Meanwhile, the winners in the UK housing market have been parts of the north, with the north-west especially experiencing a boom.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

However, Rightmove has noted the biggest annual rise in buyer enquiries in the capital compared to elsewhere in the market. Prospective buyers surged by +24% between February 2020 and February 2021 in London.

It has also experienced its biggest annual price hike rate since 2016. This could be a direct result of pandemic restrictions being lifted and attracted workers and city dwellers back to London.

Pressure is easing

One of the biggest challenges faced by the UK housing market in recent years is lack of stock compared to buyer numbers. This has contributed to house prices rising at a faster rate in some areas.

Ben Hudson, managing director at Hudson Moody in York, says that as soon as a property is listed, it flies off the shelf with interest from multiple buyers. This means a lot of homes are selling at above asking price, making accurate valuations even more difficult.

He adds: “The good news is we are starting to see the first signs of the pressure easing, and more traditional seasonal markets returning after two years of frenetic pandemic markets.

“We are going out to value more properties, and seeing more new listings come to the market for sale, and we are seeing signs of a busy, but more traditional spring season.”

By Eleanor Harvey

Source: Buy Association

Discover our Mortgage Broker services

Marketing No Comments

House prices in Scotland rise by more than UK average

House prices in Scotland rose by more than the UK average last year, with an 11.2% increase over the year to December 2021.

Analysis from the Office of National Statistics (ONS) found that the average house price in Scotland reached £180,000.

Across the UK generally, house prices increased by 10.8% over the year to December 2021, according to the UK House Price Index.

The ONS found that the average house price across the whole of the UK reached record levels in the month of December, with the average UK house price increasing by £27,000 last year, ending 2021 on a record high of £275,000, according to official figures.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

ONS head of Inflation Mike Hardie said: “House prices in the UK all reached record levels this month, with the average UK house price at £275,000 in December 2021, £27,000 higher than this time last year.

In Scotland the average house price increased by 11.2% over the year to December 2021, and while lower than the 12.1% increase in the year to November 2021, average price increases were recorded in all 32 local authorities across the country.

The largest increase was in Fife where the average price increased by 16.0% to £166,836. The smallest increase was recorded in Aberdeen, where the average price increased by 3.5% to £148,251.

Edinburgh remained the highest-priced area to purchase a property with the average price sitting at £312,459.

In contrast, the lowest-priced area to purchase a property was East Ayrshire, where the average price was £121,488.

Commenting on the house price figures in Scotland, Registers of Scotland (Ros) Business Development Director Kenny Crawford said: “The average price of a property in Scotland in December was £180,485, slightly lower than £183,876 reported in November 2021 which was the highest reported for any month since January 2004, from when Scottish data for the UK HPI was first available.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

“Over the year as a whole, from November 2020 to the end of October 2021, the number of transactions has picked up following the reductions caused by COVID-19 measures and cumulatively is now 67% higher than the previous year.

Figures in the current year to date are also 15.5% higher than pre-COVID-19 figures from November 2018 to October 2019.”

According to RoS figures detached properties showed the biggest increase out of all property types, rising by 16.7% in the year to December 2021 to £330,461. Flatted properties showed the smallest increase, rising by 5.9% in the year to December 2021 to £122,189.

A separate ONS report also released on Wednesday showed that private rental prices paid by tenants in the UK increased by 2.0% in the 12 months to January 2022 – representing the sharpest annual growth rate since February 2017.

Excluding London, private rents increased by 3.0% year on year.

Nitesh Patel, strategic economist at Yorkshire Building Society, said: “A key challenge in the current housing market is the lack of supply of homes for sale whilst demand continues to remain strong.

“For most of last year the stamp duty holiday had provided a boost but even after that ended prices have continued to rise. Low borrowing costs and a strong jobs market are key drivers but in the coming months a further deterioration in household finances may take some of the heat out of the market.”

By Stephen Mcilkenny

Source: Scotsman

Discover our Mortgage Broker services