Where have prices increased the most across the UK?
Northern Ireland is steaming ahead – annual house price inflation here was up by 15.2%, equating to an average property price of £187,833. Wales is the location of choice for so many, and has seen a very strong rate of annual growth, up by 14.3%, with an average property cost of £219,281. Meanwhile the South West saw the highest annual house price growth of any region in England, at 14.2%, where a typical home now costs £308,128. Up in Scotland, the temperatures and house price inflation is slightly cooler, but still a very strong 9.9%. That means that as of June, the average cost of a Scottish home is now £201,549, breaking through £200,000 for the first time in history.
Where have house prices increased the least?
The exceptions to the price rule last year are London where we’re seeing lower rates of growth. The annual property growth is currently 7.1% but the average price of a property here is £547,031 so it really remains one of the most expensive places to purchase property in the UK.
How will these house price increases affect the housing market for the rest of this year?
Most homeowners have experienced a lift in equity, which could encourage some people who have been undecided about moving to finally take the plunge. The increase in house prices will possibly persuade a lot more sellers to come to market over the next few weeks. On the other side of the coin is the fact that increased prices can also make it more challenging for buyers, although this will be dependent on where they are located, and the type of property they are purchasing. The increased price of property could also make it difficult for sellers to find a property to move to, but that’s where a good agent can be valuable.
Are buyers likely to have more property choice later this year?
A huge factor in the lack of choice was the lack of sellers coming to market, as well as the speed at which the market was moving. According to Zoopla, the average time between listing a property and agreeing a sale subject to contract was 50 days in the years before the pandemic. In 2022, it’s consistently below 30 days. As the market starts to move at a more normal pace, there will certainly be more properties coming to market, which is great news for house hunters.