Price growth continues…
The average price paid for a home in England and Wales in July 2022 was £370,893, up by some £2,400, or 0.6%, on the revised average price paid in June.
This was revealed in the latest e.surv Acadata House Price Index, which showed the persistent strength of the market as house price growth continued, with increases occurring in each of the last 11 months. From the start of the pandemic in March 2020 to the end of June 2022, the average house price increased by some £52,600, or 16.7%.
This is contrast to the latest Halifax House Price Index which reported – for the first time in 13 months – the smallest of falls in the monthly house price growth rate, of -0.1% for the UK.
Read more: What’s happening with UK house prices? Halifax reveals the latest.
Acadata analysts, however, noted that the Halifax index is based on the lender’s own mortgage business, unlike Acadata’s which is reporting all mortgaged and cash sales across England and Wales.
“We know the market faces some headwinds that have not yet made themselves felt in the data we are seeing for sale prices to date,” Richard Sexton, director at e.surv, commented. “But we should not forget that there are also more positive tailwinds that continue to mean residential property is an attractive proposition for many.
“Full employment and the available returns which our data shows, make housing a good investment choice compared to many other asset groups. There are some buyers and investors fortunate enough to be more immune to interest rate rises so far and they are still buying and selling.
“Obviously, increasing rates will impact appetites and create affordability issues for some, but the supply issues facing the market remain a force for maintaining pressure for house price growth.”
The e.surv Acadata index also showed that all 10 GOR areas have experienced rising prices over the last 12 months, with eight of the 10 areas setting new record average house prices in June 2022. The two exceptions are the North East, and Greater London – where seven of the top 10 boroughs by value saw their prices fall in June.
