House prices increased at the fastest annual pace since 2007 in February to reach a new record high, according to an index. At 10.8 per cent, the annual rate of house price growth was the strongest since June 2007, Halifax said.
The increase took the average house price across the UK to a new record high of £278,123. Property values increased by 0.5 per cent month-on-month.
Russell Galley, managing director, Halifax, said it was the eighth month in a row of house price growth, adding that the housing market had proved resilient throughout the pandemic. Average property prices have risen by £38,709 since February 2020 - an increase of 16 per cent, he said.
“Lack of supply continues to underpin rising house prices, with recent industry surveys showing a dearth of new properties being listed, now a long-term trend," he said.
“Looking ahead, as Covid moves into an endemic phase and almost all domestic restrictions are removed, geopolitical events expose the UK to new sources of uncertainty. The war in Ukraine is a human tragedy, but is also likely to have effects on confidence, trade and global supply chains.
“Surging oil and gas prices are one immediate consequence, meaning that inflation in the UK – already at a 30-year peak – will remain higher for longer. This will add to the squeeze on already stretched household incomes.
"While increases in Bank Rate look likely in the near term, the extent of the rises will depend on how it affects prices and companies’ approaches to pay over the months to come. These factors are likely to weigh on buyer demand as the year progresses, with market activity likely to return to more normal levels and an easing of house price growth to be expected.”
