The House Price Index published by Nationwide shows that the yearly growth in the average price of a house in the UK rose by another 12.6% last month, compared with 11.2% for January.
It marks the seventh month in a row in which the average UK house price has risen and also represents a sharp increase in the monthly rate of growth. The degree of growth on a month-on-month basis for January this year was 0.8%, whereas for February it hit 1.7%. It means that the average UK price for a home is currently £260,230 – the first time it has ever been higher than £260,000.
The rocketing prices are being put down to the continued lack of new available homes to buy, which is keeping demand for the existing stock at extremely high levels. An average home in the UK would now cost a buyer 20% more than it would have two years ago.
Talking to Mortgage Strategy about the situation, the Chief Economist for Nationwide, Robert Gardner, stated that the ongoing rises in average prices were unexpected, with the cost of living crisis and general economic concerns:
“The continued buoyancy of the housing market is a little surprising, given the mounting pressure on household budgets from rising inflation, which reached a 30-year high of 5.5% in January, and since borrowing costs have started to move up from all-time lows in recent months.”
The need for mortgage advisors with the right CeMAP training to help buyers navigate a tricky market has likely never been greater.