House Prices Biggest Rise In 15 Years

Fri 15 Jul 2022

So many people keep waiting for the property market to slow down, or for prices to tumble, but this doesn’t appear to be the case at any time soon.

Russell Galley, Managing Director, Halifax, said: “The UK housing market defied any expectations of a slowdown, with average property prices up 1.8% in June, the biggest monthly rise since early 2007. This means house prices have now risen every month over the last year, and are up by 6.8% or £18,849 in cash terms so far in 2022, pushing the typical UK house price to another record high of £294,845. The supply-demand imbalance continues to be the reason house prices are rising so sharply. Demand is still strong – though activity levels have slowed to be in line with pre-Covid averages – while the stock of available properties for sale remains extremely low.”

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The issue of low stock is unlikely to change or go away for some time, which puts property owners looking to sell their house in a great position. We are pleased to say we have helped many Halifax homeowners connect with buyers, and if you are looking for guidance on making a move in the housing market, let us know and we will be happy to assist you.

Russell Galley also said; “Property prices so far appear to have been largely insulated from the cost-of-living squeeze. This is partly because, right now, the rise in the cost of living is being felt most by people on lower incomes, who are typically less active in buying and selling houses. In contrast, higher earners are likely to be able to use extra funds saved during the pandemic, with the latest industry data showing that mortgage lending has increased by the highest amount since last September. Of course, the housing market will not remain immune from the challenging economic environment. But for now, it continues to demonstrate – as it has done over the last couple of years – the unique combination of factors impacting prices. One of these remains the huge shift in demand towards bigger properties, with average prices for detached houses rising by almost twice the rate of flats over the past year (+13.9% vs +7.6%).”

Russell Galley concluded by saying; “In time though increased pressure on household budgets from inflation and higher interest rates should weigh more heavily on the housing market, given the impact this has on affordability. Our latest research found that the strong rise in property prices over the last two years, coupled with much slower wage growth, has already pushed the house price to income ratio up to a record level. So, while it may come later than previously anticipated, a slowing of house price growth should still be expected in the months ahead.”

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Anyone who is keen to sell their home in Huddersfield should contact ADM Residential today. We are more than happy to provide you with a property valuation, which is the ideal starting point for anyone looking to enter the Huddersfield housing market with confidence.