(Nationwide) The UK posted an annual 14.3% increase in house prices in March, accelerating from a gain of 12.6% the previous month. The rate of increase was the strongest since November 2004.
On a month-over-month basis, house prices rose by 1.1%, marking the eighth straight months of increases.
Following the gains, house prices in the UK climbed to a new record high of 265,312 pounds. The prices have risen by more than 33,000 in the past year and remain 21% higher than the levels before the pandemic.
On a regional basis, Wales posted the highest house prices at 15.3% year-over-year in the first quarter, slower than 15.8% gain in the previous quarter. London saw the weakest house growth, with prices rising by 7.4%, compared to 4.2% in the previous quarter.
Nationwide chief economist Robert Gardner says the rising house prices are fueled by demand amid strong labor market conditions. He says the significant savings made during lockdowns could have also boosted home buyers’ incomes.
Gardner expects the housing market to slow in the next quarters as high prices squeeze household incomes, fueled by rising inflation.
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