Now two years on from the start of the pandemic, the UK is facing new uncertainties around the war in Ukraine impacting energy prices and the rate of inflation. Looking at the latest reports for April, CrowdProperty reports on what this will mean for the sector going forward.

 

Halifax has reported that the average UK house price has increased by 1.4% this month (£3,860) which is the 9th consecutive month - the biggest jump since September. On average, the price of houses continues to be at +11% which is around its highest level since mid- 2007. The average house price is now £282,753 which is an addition of £28,113 compared to last year which is not far off the average UK earnings. In nominal terms, average house prices are 41.6% above the 2007 peak but in real (inflation adjusted) terms, this is 8.4% below the 2007 peak, according to the Nationwide House Price Index latest release covering the market to the end of March 2022.

The causation of this nominal price growth trend remains the same – limited supply and strong demand. Although this month Halifax has noted that they have seen more homes coming to the market, but nothing of any substantial impact to alter the trends we have seen so far. Russell Galley, Managing Director at Halifax summarised as “too many buyers are chasing too few properties.”