9 May 2022
House prices are said to have risen by 1.8% in June 2022 which is the steepest increase since 2007, with the average house price reaching £294,845, says Halifax. The increase of the cost of living and the lack of available homes on the market, saw further increases in property prices.
Halifax comments on the housing market which has been largely protected from the rising cost of living to date. “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. In contrast, higher earners are likely to be able to use extra funds saved during the pandemic,” said Halifax managing director Russell Galley.
A slowdown in house prices is expected in the coming months. As we have seen in recent months, The Bank of England has announced a series of interest rate rises to stem soaring inflation, lifting mortgage rates for some borrowers. This should start to have an impact on house prices as demand reduces.
Halifax states that the “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”