Further £3,000 increase in cost of average UK house

Values have risen for ten consecutive months, say Halifax

The average UK house price increased by more than £3,000 in April, marking the longest run of monthly rises since 2016, according to an index. Halifax said the average property value rose by 1.1% or £3,078 last month.

Russell Galley, managing director of Halifax, said: ‘This was the 10th consecutive month that property values have increased, the longest run of continuous gains since the end of 2016.’

The typical house price was a new record of £286,079 – an annual increase of 10.8%.

At the current rate of growth, the price of a typical home could hit £300,000 by the end of the year, but Halifax said that remains unlikely given the economic conditions predicted.

Prices have increased by £47,568 on average over the past two years, the report said.

It took the previous five-anda-half years to make an equivalent leap, with values increasing by £47,689 on average between October 2014 and April 2020.

Mr Galley said: ‘The imbalance between supply and demand persists, with an insufficient number of new properties coming on to the market to meet the needs of prospective buyers and strong competition to secure properties driving up prices.

‘There remains evidence that this demand is centred on larger family homes rather than smaller properties such as flats. Over the past year, prices for detached and semi-detachedpropertieshaverisen by over 12%, compared to just 7.1% for flats.

‘The net cash increase for detached properties, at just under £50,000 over the past year, is nearly five times more than for flats.’

House prices have continued to climb despite the cost-of-living crisis. Inflation is expected to hit 10%-plus in the coming months and the Bank of England raised the base rate to 1% this week, pushing up costs for some borrowers.

Mr Galley continued: ‘The headwinds facing the wider economy cannot be ignored.

‘The house price-to-income ratio is already at its highest ever level (7.2 times full-time average earnings typically) and with interest rates on the rise and inflation further squeezing household budgets, it remains likely that the rate of house price growth will slow by the end of this year.’