(Halifax) The average house prices in the UK reached a record 278,123 pounds in February, after rising by an annual rate of 10.8%, the fastest gain since June 2007.
Compared to the previous month, the UK house prices were 0.5% or 1,478 pounds higher. The prices gained 2.5% on a quarterly basis.
House prices rose the highest in Wales, with an annual gain of 13.8%, while the South West of England saw annual price inflation of 13.4%. London prices rose the least at an annual 5.4%, although it was at the strongest since the end of 2020.
The surge in UK house prices is connected to supply challenges, with the decline of new property listings to blame.
House prices have now risen for the eighth straight month in the UK, with the increases expected to exert pressure on household finances this year.
Halifax’s Managing Director Russell Galley expects market activity to return to normal as the year progresses as demand wanes due to high prices amid escalating geopolitical tensions in Eastern Europe.
UK house prices have now jumped by 38,709 pounds or 16% since the start of the pandemic. The prices have increased by an average of 27,215 pounds over the last 12 months.
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