UK house prices climb higher to £278,436 as market heat awaits ‘cooling’
The average price of a home has continued to climb higher, though its non-stop steamroll is still showing signs of slowing, according to the latest figures.
House prices have increased 9.8 per cent to £278,436 in the year to March, down slightly from the 11.3 per cent in annual growth recorded in February of this year, the Government’s UK House Price Index (HPI) found.
Properties have grown 0.3 per cent in value between February and March, signalling a more moderate pace in comparison with the 1.6 per cent of growth reported in the same period last year.
The pandemic has spurred runaway property costs, as the so-called race for space and the stamp duty holiday encouraged a frenzy among buyers.
However, the lowest annual growth was found in London, where prices eked out around 4.8 per cent of annual growth. Though average prices are still leaps ahead of the UK average at £523,666.
“We may see the cooling effects come into play more in the coming months, but significantly, unlike other periods of high inflation, it is the sustained demand from home buyers that will continue to press house prices upwards in the short term in spite of macro-economic headwinds,” explained Nick Leeming, chairman of estate agents Jackson-Stops.
“We would anticipate this momentum continuing for the next quarter, in which a period where demand is lower than supply remaining considerably far off.”
House prices have slipped in 15 of the 34 London boroughs during March, with the largest fall found in the City – worth an equivalent of £27,420, as well as Hackney and Camden.
While homeowners in Kensington and Chelsea, Westminster and Ealing have been enjoying comfortable prices rises in the period.
CEO of property platform Twindig and former Jefferies analyst, Anthony Codling, said: “It may be a good thing for some of the wind to be taken out of London’s house price sails, but it wouldn’t be good for the UK economy if we got stuck in the house price doldrums.
“Time will tell if the current moves are similar to a pollen-induced sneeze rather than a full-blown cold (or something worse). We continue to believe that cost of living increases will feed through to wage rises in the medium term, which will in turn support rather than unsettle house prices.”