22 June 2022
If you are covering the latest UK house price index for April, please see the following comment from Karen Noye, mortgage expert at Quilter:
“The government’s UK house price index for April shows that while the steady march of increasing house prices finally looks set to be slowing, it has not been completely stifled, with the average house now costing £281,161.
“The average house price increased by 12.4% in the year to April 2022, up from 9.8% in the year to March 2022. Month on month the average price increased by 1.1%, up from a monthly price change of 0.3% in March. This uptick in house prices is likely due to a number of factors, including people pushing to buy ahead of any further Bank of England rate rises as a result of soaring inflation.
“Just last week the Bank of England hiked interest rates to 1.25% as it now predicts inflation to hit more than 11% later this year. Soaring inflation, the rising cost of living, high energy bills which are set to increase even further in October and minimal support from the government mean many people are feeling the pressure financially. What started out as a ‘pinch’ on people’s finances is now a heavy burden on an increasing number of households. With wages failing to keep up, the high costs of moving home will put off prospective buyers and first-time buyers will see their hopes of getting a foot on the property ladder pushed further out of reach.
“As of this morning, inflation now sits at 9.1% and people are struggling with the worst food and energy price hikes for decades. As such, the housing market could see a slowdown in the coming months as the cost-of-living crisis further takes its toll, and house prices could fall as a result.
"The UK continues to face a severe financial problem and while the housing market managed to defy expectations and overcome the immediate problems of the pandemic, the cost-of-living crisis will no doubt be its biggest challenge yet.”