Annual house price growth hits 10%

Annual house price growth climbed to 10.0% last November, a slight rise from 9.8% in October, according to figures from the Office for National Statistics (ONS).

The increase took the average house price in the UK to £271,000 which is £25,000 higher than the same month a year earlier.

Average house prices increased over the year by 9.8% in England to £288,000, 12.1% in Wales to £200,000, 11.4% in Scotland to £183,000, and by 10.7% in Northern Ireland to £159,000.

Despite being the region with the lowest annual growth, London’s average house prices remain the most expensive of any region in the UK at an average £520,000 in November. The ONS also revealed that the North East continued to have the lowest average house price at £149,000, having surpassed its pre-economic downturn peak of July 2007 in December 2020

Commenting on the figures, Legal & General Mortgage Club director, Kevin Roberts, said that the end of the stamp duty holiday “hasn’t done much to dampen demand” in the housing market.

“Buyers are still being influenced by mortgage rates that remain low, but also the ongoing impact of the COVID-19 crisis,” Roberts said. “Many are continuing to take the opportunity to move, whether it’s to find larger properties, or those with home office space or a garden.
 
“Despite high levels of demand and little change in the housing supply, predicting the trajectory of the housing market in 2022 is not a simple task. Growing inflation and potential further base rate rises in the near future, mean the landscape is looking increasingly complex.

“Many borrowers could benefit from speaking to an adviser, who will be able to help them navigate the year ahead. Doing so could help them find a new deal on their mortgage, particularly if their fixed rate is due to end soon and ensure their mortgage repayments remain fixed for the near future.”

CEO at Loan.co.uk, Paul McGerrigan, added: “High demand, shortage of new homes coming onto the market and household savings through lockdowns have combined to create a crescendo of property activity and prices rising, resulting in the best annual performance in more than a decade.

“However, with the growing prospect of further interest rate rises in the coming months to subdue record levels of inflation coupled with rocketing energy costs, household budgets will come under increasing pressure, depleting budgets and potentially arresting price growth for much of 2022.”

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