UK house prices hit record highs

UK house prices hit record levels in January 2022

UK house prices hit record levels in January 2022, reports mortgage lender Halifax.

In January, the average UK house price on Halifax’s index was up to a new record high of £276,759. That is around £24,500 more than this time last year, and £37,500 more than two years ago, prior to the pandemic.

However, Halifax says that the cost of living squeeze means that growth is likely to “slow considerably” in 2022.

Russell Galley, Managing Director at Halifax, says that house price growth slowed down somewhat at the start of the year.

He says: “Following the peak activity of 2021, transaction volumes are returning to more normal levels. Affordability remains at historically low levels as house price rises continue to outstrip earnings growth. Despite record levels of first-time buyers stepping onto the ladder last year, younger generations still face significant barriers to home ownership as deposit requirements remain challenging.

“This situation is expected to become more acute in the short-term as household budgets face even greater pressure from an increase in the cost of living, and rises in interest rates begin to feed through to mortgage rates. While the limited supply of new housing stock to the market will continue to provide some support to house prices, it remains likely that the rate of house price growth will slow considerably over the next year.”

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