UK house prices grow 14.3% year-on-year
By Iain Gilbert
Date: Thursday 31 Mar 2022
(Sharecast News) - UK house price growth increased 14.3% year-on-year in March, according to Nationwide's house price index, up from a 12.6% rise a month earlier for the strongest pace of growth since November 2004.
The cost of the average UK home hit a new record of £265,312 in March, an increase of more than £33,000 over the past year and roughly 21% since pre-Covid-19 pandemic levels at the beginning of 2020.
Wales was the strongest performing region during the quarter, while London was the weakest.
Detached properties increased by nearly £68,000 since the onset of the pandemic, while average flat prices were up £24,000.
Nationwide said the number of mortgages given the go-ahead also remained elevated in February at around 71,000, almost 10% above pre-coronavirus levels as a combination of robust demand and limited stock of homes on the market kept upward pressure on prices. However, the bank expects the housing market to slow in the coming months.
"The squeeze on household incomes is set to intensify, with inflation expected to rise further, perhaps reaching double digits in the quarters ahead if global energy prices remain high," said Nationwide's chief economist Robert Gardner.
"Moreover, assuming that labour market conditions remain strong, the Bank of England is likely to raise interest rates further, which will also exert a drag on the market if this feeds through to mortgage rates."
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