UK house prices rose in June at their fastest monthly pace since early 2007 despite the cost-of-living crisis, according to a survey released by Halifax on Thursday.
Prices rose 1.8% from May, when they increased 1.2%. On the year, house prices were up 13% in June, versus a 10.7% jump the month before. The average house price pushed up to another record high of £294,845.
The annual growth rate was the highest since late 2004.
Russell Galley, managing director at Halifax, said the UK market had continued to defy any expectations of a slowdown.
“The supply-demand imbalance continues to be the reason house prices are rising so sharply,” he said. “Demand is still strong – though activity levels have slowed to be in line with pre-Covid averages – while the stock of available properties for sale remains extremely low.
“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. In contrast, higher earners are likely to be able to use extra funds saved during the pandemic, with latest industry data showing that mortgage lending has increased by the highest amount since last September.”
Northern Ireland once again topped the table for annual house price inflation, at 15.2%, with an average price of £187,833. London, meanwhile, continued to lag behind other regions, with house price inflation of 7.1%, although the average price of £547,031 means it remains by far the most expensive place in the UK to buy a home.
