UK house prices have reached record highs for the fifth month in a row, with the average asking price standing tall at £368,614 according to Rightmove. Despite rapid price growth, buyer demand remains strong, which is why certain areas in the UK are experiencing a particularly large growth in house prices this year.
According to the latest office for national statistics (ONS) data, in April, the highest growth recorded was in the South West, where prices increased by 14.1% to £318,610. This was up from a growth rate of 10.5% in March 2022. The substantial increase could be due to the demand for housing outside of London and the post-pandemic ‘search for space’, where spacious and distant settings have become more valuable than ever before.
London being the most expensive region in the UK, saw the lowest annual house price growth at 7.9%, with the average property costing £529,829. Despite being the region with the lowest annual growth, the capital’s average house prices remain the costliest of any region in the UK. Regardless of price growth, buyer demand remains steadfast and even rampant in areas with close access to commuter hotspots such as the new Elizabeth line.
The North East continues to have the lowest house prices, averaging at £155,000. This is because areas in the North East see a denser supply of housing which can meet customer demand. It’s also believed that there is a more diverse range of job opportunities located closer to the capital, which is why demand may be lower.
Average house prices in England, Scotland and Wales all hit record levels in April, the ONS said. Prices increased by 11.9% to £299,000 in England, while Wales and Scotland saw a 16.2% increase to £212,000 and £188,000. Northern Ireland’s prices rose by 10.4% to £165,000.
Regarding the latest figures, Chris Jenkins, ONS prices statistician, said: “While annual growth nudged up again in April, this was mainly due to falls seen at this time last year from changes in the previous stamp duty holiday. Wales and Scotland saw the highest growth with London, again, growing the slowest.”
Price growth is inevitable in today’s climate, demand for housing rises alongside the population, and this year the property market sees historically significant changes on the heels of the pandemic. First-time buyers are becoming increasingly more interested in shared ownership or opting to move further from their workplace to cut down their living costs.
The good news is that property experts expect that economic headwinds may be changing as we move away from spring and into the second half of 2022. Rightmove recorded a slowing in asking
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