Nationwide says the typical home is rising £26,000 a year to £271,600 with a faster rise in the South West, but house prices are now slowing slightly
- Year-over-year price growth slowed to 10.7% in June, down from 11.2% in May.
- The South West overtook Wales as the strongest performing region, at 14.7%.
- The average house price in the UK is now at a record high of £271,613.
House price growth in Britain slowed slightly in June, rising 10.7 percent from a year earlier, down from 11.2 percent in May.
The average property price is still at a record high of £271,613, with prices rising by more than £26,000 in the last year.
Monthly, home prices continue to rise, with a seasonally adjusted increase of 0.3 percent from May to June, according to the National Building Association.
London continues to experience the slowest growth in house prices, despite having the most expensive real estate
This was the eleventh consecutive month that home prices have increased.
But the index showed that house price increases slowed in 9 of the UK’s 13 regions in June.
“The housing market has held a surprising amount of momentum given the increasing pressure on household balance sheets from rising inflation, which has already pushed consumer confidence to a record low,” said Robert Gardner, chief economist at Nationwide.
But, he added, there were “initial signs of a slowdown” in the housing market, with the cost of living crisis intensifying and mortgage interest rates continuing to rise.
He added, “The market is expected to slow further as pressure on household finances intensifies in the coming quarters, with inflation expected to reach double digits at the end of the year.”
England has the most expensive average price at £309,774, followed by Wales at £208,309 and Northern Ireland at £181,550.
The southwest overtakes Wales as the area with the biggest rises
The South West overtook Wales as the strongest performing region in the second quarter of 2022, with house prices up 14.7 per cent year-on-year, up slightly from the previous quarter.
This was followed by East Anglia, where annual price growth remained at 14.2 per cent.
The South West has seen significant growth since the start of the pandemic and prices have grown faster in the region during the second quarter than in the rest of the UK
Tomer Aboudi, director of real estate lending at MT Finance, said in response to the index: “With interest rates rising along with inflation, slowing growth is not surprising.
However, there is still evidence of confidence in the market due to the willingness to buy and take advantage of mortgage rates before they rise further.
The South West has seen the largest price increase due in part to the relatively lower values to start with but also because of the extra space home buyers can buy in these locations compared to London.
“The capital remains the most expensive part of the country to buy real estate, which is why it is experiencing the slowest growth due to affordability issues and a relative lack of affordable buyers.”
Since the pandemic, the Southwest has seen sustained home price growth. Since the first quarter of 2020, home prices have increased by 27.7 percent, after adjusting for seasonal effects.
The region is followed by Wales, where average prices increased by 26.2 per cent, and in the North West, prices increased by 25.8 per cent.
In contrast, London experienced the slowest growth rate during this period. Housing prices in the capital have increased by 14.9 percent since early 2020.
These numbers are also reflected during the most recent quarter. Price growth in the Northwest rose to 13.3 percent year-over-year, from 12.4 percent in the first quarter.
London remained the UK’s weakest performing region, with annual price growth slowing to 6.0 percent, from 7.4 percent in the previous quarter.