The new house price index from Halifax shows that the average price of a house in the UK has surged to nearly £300,000 in the two-year period since the initial Covid-19 lockdown.
According to this index, the average price is currently £282,753. This represents a rise of close to £44,000 in the period between March of 2020 – when the first lockdown was announced – and now. The average price has gone up £43,577 in that two-year spell, with price inflation on a year-to-year basis standing at 11% by March 2022. This is the sharpest rise that there has been in 15 years.
March brought a rise of 1.4% in prices, which amounts to a financial increase of £3,860. The Halifax index states that this made it the ninth successive month to bring an increase in average UK house prices, with the March one being the highest since September of 2021.
When looked at by region, it is the South West that has seen the sharpest price inflation, with a 14.6% rise there. That marks the biggest price increase for that region for almost two decades. Wales was the area with the next highest house price inflation, at 13%.
Russell Galley from Halifax told Mortgage Solutions that:
“The story behind such strong house price inflation remains unchanged: limited supply and strong demand, despite the prospect of increasing pressure on household finances.”
This is challenging for buyers, and many require an advisor with a CeMAP qualification now more than ever to help them find an affordable way to buy.