Largest annual cash increase recorded by the monthly index in more than 30 years of its existence
Average house price in February almost £30,000 more than a year ago
Price of a typical home now around 20% up on what it was in February 2020
The typical value of a property reached £260,230 in February, reported Nationwide Building Society.
This means that in cash terms, the average house price in February was up £29,162 on a year earlier; this is the largest annual cash increase recorded by the monthly index in more than 30 years of its existence.
Nationwide said the price of a typical home was now around 20% up on what it was in February 2020, just prior to the Covid lockdowns began in the UK; which equates to a cash increase of more than £44,000.
The growth of house prices has outpaced wage increases; the price of a typical home is now at about 6.7 times average earnings, up from a ratio of 5.8 back in 2019, reported Nationwide.
Annual UK house price growth was up to 12.6% in February 2022. Prices have increased by 1.7% month on month.
Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth accelerated to 12.6% in February, up from 11.2% in January and the strongest pace since June last year.
“Prices rose by 1.7% month-on-month, after taking account of seasonal effects, the seventh consecutive monthly increase.
“The price of a typical home rose above £260,000 for the first time in February, an increase of £29,162 over the past 12 months.
“This is the largest ever annual increase in cash terms since the start of our monthly index in 1991.
“The price of a typical home is now £44,138 (20%) higher than in February 2020 – the month before the pandemic struck the UK.”
Mr Gardner said housing market activity has stayed robust in recent months, with mortgage approvals still running above pre-pandemic levels at the beginning of the year.
He said: “A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices.”
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