[ad_1]
Although the Covid pandemic has impacted many industries across the British Isles, in the last two years, the price of homes has increased to unprecedented levels. The beginning of 2022 has continued the trend of homes growing in value, as a result of high consumer demand for housing and low availability from estate agents. So, what exactly have the latest figures revealed?
According to Halfiax’s House Price Index for January, the valuation of UK homes grew by 0.3 percent.
However, this was the lowest rise recorded since June 2021 (-0.6 percent).
The measure, which conducts a review of figures on a monthly basis, also found the average British home was now worth a record £276,759.
Out of the four nations which make up the UK, Wales posted the strongest growth, despite annual house price inflation (13.9 percent) being down slightly compared with December.
READ MORE: Horror as bus topples over with 67 students on board
Here, the average property was valued at £205,253.
Meanwhile, in Northern Ireland strong figures with regards to house prices continued to be reported.
The value of homes had increased by 10.2 percent compared with last year, giving an average property estimation in January of £170,982.
Scottish homes enjoyed slightly lower growth – owing to the annual rate of inflation falling to 8.9 percent – with the average property price edging down to £192,698.
Commenting on the results, the firm’s Managing Director Russell Galley said: “Overall prices remain around £24,500 up on this time last year, and £37,500 higher than two years ago.
“Following the peak activity of 2021, transaction volumes are returning to more normal levels.
“Affordability remains at historically low levels as house price rises continue to outstrip earnings growth.
“Despite record levels of first-time buyers stepping onto the ladder last year, younger generations still face significant barriers to home ownership as deposit requirements remain challenging.
“This situation is expected to become more acute in the short-term as household budgets face even greater pressure from an increase in the cost of living, and rises in interest rates begin to feed through to mortgage rates.
“While the limited supply of new housing stock to the market will continue to provide some support to house prices, it remains likely that the rate of house price growth will slow considerably over the next year.”
One of the factors that is likely to slow growth in the housing market for 2022 is the rising cost of inflation – the rate at which prices are rising.
Analysts are expecting to see this increase result in a lower demand for properties by consumers.
Recently, it was announced that inflation had reached its highest level in 30 years, growing to 5.4 percent.
[ad_2]
Source link
