Average UK house price hits new record – up £30,000 in a year

The average UK house price has hit a record of £294,260, up £30,000 in a year, reports Halifax.

House prices continued to rise in August, but experts predict growth to slow as bills and borrowing become more expensive.

House prices in the UK rose in the year to August after dropping in July, says Halifax.

The average UK house now costs a record £294,260 reports the bank's latest house price index.

The August increase marked a return to growth for UK house prices after they dropped in July for the first time in over a year. The annual rate of house price growth was down slightly, to 11.5% from 11.8% in July – the lowest level in three months.

The annual rate of growth for the year up to August 2022 slowed to its lowest level in three months. Over the quarter house prices rose 2.6 per cent.

Kim Kinnaird, Director, Halifax Mortgages, said: 'While house prices have so far proved to be resilient in the face of growing economic uncertainty, industry surveys point towards cooling expectations across the majority of UK regions, as buyer demand eases, and other forward-looking indicators also imply a likely slowdown in market activity.

“Firstly, there is the considerable hit to people's incomes from the cost-of-living squeeze.

“The 80 per cent rise in the energy price cap for October will put more pressure on household finances, as will the further increases expected for January and April.

“At the levels being predicted, this is likely to constrain the amounts that prospective homebuyers can afford to borrow, on top of the adverse impact of higher energy prices on the wider economy.”

Even if the government was to intervene to reduce energy bills, Kinnaird said that borrowing costs would continue to increase as the Bank of England is expected to further raise the base rate which will affect house prices.

“However, this should be viewed in the context of the exceptional growth witnessed in recent years, with average house prices having increased by more than £30,000 over the last 12 months alone,” she added

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