Average property prices in the United Kingdom grew for the fifth straight month to high, a fresh record high, according to data released by Halifax.
- The average UK property price stood at £272,992, marking an increase of 1% or £2,308 to bring the annual inflation rate to 8.2%. Typical prices have increased by nearly £13,000 since June, and over £20,000 since a year ago.
- The latest figures brought the rolling quarterly uptick in property prices to 3.4%, marking the biggest gain in 15 years since late 2006. House prices have now climbed by £33,816 since the onset of the COVID-19 pandemic in March 2020, or an average of £1,691 monthly.
- Halifax Managing Director Russell Galley attributed the rally to the shortage of available properties, along with a strong labor market and keen competition among mortgage firms pushing to keep rates around historic lows.
- Galley believes uncertainty will hound the market for quite some time, as interest rates are likely to be increased to address the inflationary uptick. Confidence could also be hit by the detection of the new Omicron variant.
The current level of house prices is unlikely to be sustained in 2022, given the high house price to income ratios.