UK house prices surge to outpace inflation

UK house prices surge to outpace inflation

0:02 AM, 11th September 2024, About A day ago

Text Size

The UK housing market is experiencing a resurgence as house prices continue to outpace inflation, according to a new analysis.

Peer-to-peer real estate investment platform easyMoney says the proportion of local authority districts seeing house price growth exceed inflation has grown from 2.8% to 44.2% in the past year.

It compared average annual house price growth to the rate of inflation (CPIH) in June 2023 and June this year to reveal how the market has strengthened.

After a period of economic challenges, it found that the UK economy is showing signs of recovery, and the current inflation rate is near the Bank of England’s target.

Market has been resilient

The firm’s chief executive, Jason Ferrando, said: “The UK has spent the past few years under the cloud of economic uncertainty, high inflation, soaring interest rates and a significant cost of living crisis.

“Even so, while many experts predicted this difficult period would result in a house price crash, the market proved itself to be incredibly resilient and rather than fall, house prices simply remained static.”

He adds: “Now that inflation is falling, we’ve started to see prices increase at great pace and without hesitation, with significant growth already seen across much of the market.

“As an investment asset, there are very few things, if any, that are more secure and more prosperous than property.”

Five consecutive months of monthly growth

The firm’s house price index has recorded five consecutive months of monthly growth and four consecutive months of annual growth.

The analysis by easyMoney shows that a year ago, the annual rate of house price growth in the UK was just 0.01%.

Today, the average house price is up by 2.73% on an annual basis.

House price growth outperformed inflation

On a regional level, six of 12 regions have seen house price growth outperform inflation.

Yorkshire and Humber and Northern Ireland lead the way with growth rates of 4.66% and 6.39%, respectively.

A further analysis reveals that a year ago, there were only 10 UK local authority districts where average house price growth outpaced inflation.

Today, the number has increased to 159, representing 44.2% of the market.


Share This Article


Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now