New high for UK house prices

February 14, 2022 by Heidi

House Prices

The new house price index published by Halifax shows that the average price of a home in the UK soared to a further record high level during January, even though overall growth slowed down.

Last month brought growth of 0.3% in UK house prices, but that was still enough to see the average price hit £276,759, which is the highest it has ever been. The price growth for January was the lowest for a single month since June of last year, but the year-on-year house price growth was 9.7%, keeping it at a consistent level.

Managing Director for Halifax, Russell Galley, said that with house prices rising at a much faster rate than wages, the ability of people to afford to buy was at the lowest it has ever been. He added that this was particularly true for younger first-time homebuyers, who also faced issues with being able to afford the deposits needed to buy a home.

Karen Noye from Quilter stated that a combination of increases in interest rates, inflation and energy costs were creating financial problems for people, but that the end of the holiday on stamp duty had not brought the immediate decline in price growth many had expected.

Noye went on to add that a combination of all of these factors meant that a slowing down in the rate of price rises could still be expected during 2022, however.

CeMAP mortgage advisor training will likely be crucial for advisors, with so many factors making it difficult for buyers in the housing market right now.