House prices up 1.8% in June from the month before, says Halifax
UK house prices have risen for the 12th consecutive month in June showing the market has “defied any expectations of a slowdown”, according to the Halifax House Price Index.
Average prices went up 1.8% between May and June, and the annual growth rate was 13%, which was the highest since late 2004, the property index has shown. The average house price is now £294,845.
Russell Galley, managing director, Halifax, said: “The UK housing market defied any expectations of a slowdown”. He explained prices were being kept high because of the “supply-demand imbalance”.
He added: “Property prices so far appear to have been largely insulated from the cost of living squeeze. This is partly because, right now, the rise in the cost of living is being felt most by people on lower incomes, who are typically less active in buying and selling houses.”
High earners, however, were likely to have been saving funds during the pandemic, Galley said. “Mortgage lending has increased by the highest amount since last September”, he said.
The latest Bank of England figures have shown the number of mortgages approved to finance house purchases went up in May from April this year by 0.1% to 66,163.
Northern Ireland prices were top of the table for annual house price inflation again, up by 15.2% to an average property price of £187,833. Wales also has a strong rate of annual growth, up by 14.3% with an average property cost of £219.281.
Halifax noted there had been a “huge shift” in demand for bigger properties, with average prices for detached houses rising by almost twice the rate of flats over the past year: 13.9% compared to 7.6%.
But Galley also warned: “The housing market will not remain immune from the challenging economic environment. In time increased pressure on household budgets from inflation and higher interest rates should weigh more heavily on the housing market, given the impact this has on affordability.”