HOUSE prices are 20% higher than they were in February 2020 – the month before Covid struck the UK – Nationwide said today
The building society says the average UK home costs more than £260,000, up nearly £30,000 in the last 12 months alone.
In London, a typical home costs more like £650,000, though the market wobbled somewhat last year as estate agents reported swathes of people looking to get out of the capital and find more space elsewhere.
That trend may be in decline. Foxton’s, the London estate agent, today returned to annual profit of £5.6 million following two years of losses. CEO Nic Budden said: “The sales market remains buoyant.”
Nationwide says UK house prices are rising at 12.6% a year. That is up from 11.2% in January.
Even the building society thinks this is somewhat surprising given rising interest rates and a well reported cost of living crisis.
Chief economist Robert Gardner said: “The continued buoyancy of the housing market is a little surprising, given the mounting pressure on household budgets from rising inflation, which reached a 30-year high of 5.5% in January, and since borrowing costs have started to move up from all-time lows in recent months. The strength is particularly noteworthy since the squeeze on household incomes has led to a significant weakening of consumer confidence.” He added:
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“A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices.” Karen Noye, a mortgage expert at wealth managers Quilter, said: “Prices now on average stand an incredible £29,000 higher than they were a year ago. “For first-time buyers these increases represent a game of cat and mouse where prospective buyers just manage to save enough for a deposit before the cost of their first home is just out of reach again.” Myron Jobson, senior personal finance analyst at interactive investor, said: “The harsh reality is rising rents, ballooning inflation which continues to outstrip wage growth, and a lack of affordable housing has priced many out of the market.” |
