House prices increase at fastest annual pace since 2007 as property values jump by almost 11 per cent
House prices increased at the fastest annual pace since 2007 in February to reach a new record high, according to an index.
At 10.8 per cent, the annual rate of house price growth was the strongest since June 2007, Halifax said.
The increase took the average house price across the UK to a new record high of £278,123.
Property values increased by 0.5 per cent month-on-month.
London
Commenting on property prices in London, Guy Gittins, CEO of Chestertons, told Morning Wire this morning: “London is seeing a substantial uplift in buyer demand – well beyond the previous record numbers of last year.”
“Although the suburbs remain a popular choice, the volume of buyer enquiries for areas such as Richmond or Kew has remained at last year’s levels,” he said.
Gittins added that “if 2021 was defined by a race for space and people moving out to the suburbs, 2022 is seeing an absolute boomerang effect with house hunters rushing back into the capital; a change in buyer behaviour that has been accelerated by the return of office workers and international travellers.”
Home counties
Commenting on property prices in the home counties, buying agent Simon English, of ‘Simon English Property Search’, said this morning: “Last month, demand for family homes across the home counties has remained as strong as it was during the peak of the pandemic.”
“The areas of South West Surrey, Hampshire and West Sussex have thereby seen particularly high volumes of enquiries, which has led to competitive bidding among buyers. This has often resulted in a best and final offer scenario with agreed prices achieving more than 10% above the asking price.”
English added that: “Following last year’s unprecedented rush of London families securing larger properties across the home counties, the regional housing markets are now seeing up to 50 per cent fewer homes for sale.”
“With demand still outstripping supply, vendors wanting to sell this year should consider selling their home sooner rather than later in order to achieve their target asking price.”