House prices are continuing to rise despite the cost-of-living crisis, growing at the fastest annual rate on record.
According to the latest Halifax House Price Index, property values increased by 13 per cent from June 2021 to June 2022. A typical home in the UK cost £294,845 last month, compared with £260,973 the year before, a difference of £34,000.
While the country is facing an economic crisis, with fuel prices, energy bills and grocery costs soaring lately, this has not yet had an impact on the housing market.
Russell Galley, managing director of the financial services provider, said this is because the cost-of-living issues are mostly affecting those on lower incomes at the moment, which is not an active demographic when it comes to house buying.
“In contrast, higher earners are likely to be able to use extra funds saved during the pandemic, with latest industry data showing that mortgage lending has increased by the highest amount since last September,” Mr Galley stated.
He noted the property market will not remain unaffected by the country’s wider economy, as it becomes harder for more people to afford to get on, or climb, the housing ladder.
Therefore, the property expert predicted that house price growth will eventually slow down, but it will come “later than previously anticipated”.
Zoopla recently recommended homeowners who want to sell their property to do so at the earliest opportunity. It stated that while demand for homes is still 40 per cent above the five-year average, this is dropping every week.
“With that in mind, sellers looking to capitalise on gains during the pandemic-driven property boom should act sooner rather than later,” it advised.
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