The property market is showing no signs of slowing down, as house prices have risen at the fastest rate since 2004.
Halifax has released its House Price Index for June 2022, revealing that property values have increased by 13 per cent since June 2021, taking the average cost of a home in the UK from £260,973 to £294,845. That means homebuyers can expect to pay nearly £34,000 more for the same residence as they would have a year ago.
Managing director for Halifax Russell Galley stated: “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.”
He added that the cost-of-living crisis has not impacted house prices so far, as it is affecting mostly those on lower incomes, who are not as active in the property market.
Conversely, those on higher incomes have been able to save money over the pandemic, including on commuting costs, holidays, and social events, which means they have more money to put on their next house, which is keeping property values constantly growing.
The financial services provider also reported that house prices grew by 1.8 per cent in June, representing the twelfth month in a row that values have increased.
London’s house prices are growing at a slower rate compared with the rest of the nation at 7.1 per cent over the last 12 months.
Despite this, a typical house in the capital is £228,000 more expensive than the national average, according to government figures.
If you are interested in buying a new home, get in touch with our Hackney estate agents today.