£24,000 annual enhance in common UK home worth

The typical UK home worth jumped by £24,000 within the yr to March, based on official figures.

The everyday property worth was £278,000 in March 2022 – following a £24,000 annual enhance, the Workplace for Nationwide Statistics (ONS) stated.

The annual progress fee in March, at 9.8%, was decrease than an 11.3% annual enhance in February.

Common home costs elevated over the yr in England to a report degree of £298,000 (a 9.9% annual enhance), in Wales to £206,000 (11.7%), in Scotland to £181,000 (8.0%) and in Northern Eire to £165,000 (10.4%).

Inside England, the East Midlands had the very best annual home worth progress, with common costs growing by 12.4% within the yr to March.

The bottom annual home worth progress was in London, the place common costs elevated by 4.8% over the yr to March.

London’s common home costs stay the costliest within the UK, with a median worth of £524,000 in March.

ONS home costs statistician Ceri Lewis stated: “Our newest figures proceed to point out home costs growing and remaining at report ranges.

“UK rental costs are additionally nonetheless rising quickly throughout all nations and areas. After the falls seen final yr, London rental costs proceed to choose up with their strongest progress since November 2020.”

A separate report from the ONS confirmed non-public rental costs paid by tenants within the UK rose by 2.7% within the 12 months to April, up from 2.4% within the 12 months to March.

Personal rents elevated by 2.5% in England, 1.7% in Wales, and a couple of.9% in Scotland within the 12 months to April 2022.

Marc von Grundherr, director of property agent Benham and Reeves, stated: “The winds of change are actually beginning to blow and whereas this constructing financial headwind is but to derail the outstanding charges of home worth progress being seen throughout the UK on an annual foundation, it actually appears as if darkish clouds are gathering on the horizon.”

Man Gittins, CEO of Chestertons, stated: “Traditionally, spring marks the start of elevated market exercise with a surge in properties coming to the market. Not even half means into March, we had additionally already witnessed a spike in purchaser inquiries and gross sales in comparison with the identical time interval final yr.”

Anna Clare Harper, director of actual property know-how platform IMMO, stated: “Very like for the broader financial system, home worth inflation is being pushed by shortages of provide.

“This scarcity pertains to housing usually, and to high quality housing that individuals can afford, within the locations they need and must dwell, particularly.”

The report was launched on the identical day the ONS stated Shopper Costs Index inflation rose to 9% within the yr to April, up from 7% in March.

Andrew Montlake, managing director of mortgage dealer Coreco, stated: “9 per cent inflation, rising rates of interest and a possible recession forward will impression demand whereas lenders have gotten ever extra cautious, which is able to limit what individuals can borrow.

“It will nearly actually see the speed of worth progress gradual throughout 2022 and into subsequent yr. Solely the entrenched lack of provide can forestall costs from falling.”