The typical UK house price has increased by £32,000 in the space of just twelve months, fuelling concerns about affordability during the cost-of-living crisis.
Property prices increased by 12.8% annually in May, a jump from an 11.9% increase in April. The rising costs have pushed the average UK house price to £283,000, a whopping £32,000 higher than in May 2021, according to the Office for National Statistics (ONS).
Typical house prices in the UK:
- England: £302,000 (13.1% annual increase)
- Wales: £212,000 (14.4% annual increase)
- Scotland: £188,000 (11.2% annual increase)
- Northern Ireland: £165,000 (10.4% annual increase)
The Southwest of England was the region with the highest annual house price growth, with average prices increasing by 16.9% between May 2021 and May 2022.
In the same period, London had the lowest annual house price growth at 8.2%, however, London’s average house prices remain the most expensive across the UK at £526,000.
ONS house prices statistician Ceri Lewis said: “Annual house price inflation edged up again, with the strongest rises seen in Wales.
“London again saw the lowest increase, though prices there are continuing to accelerate.”
The house price figures were released as the UK’s rate of inflation continues to rise – reaching its highest level since February 1982.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “As house prices continue to rise, inflation soars to 9.4% and with more interest rate hikes on the way, there is growing concern around affordability and borrowing potential.
“Mortgage rates remain competitive although they are on the rise. Borrowers need to move quickly to secure the best fixed rates as they are often pulled at short notice. With service levels varying considerably between lenders, it may take longer than borrowers anticipate, particularly if their case is complex so advice is more important than ever.”
Nicky Stevenson, managing director of estate agent group Fine & Country added: “The UK may be flirting with recession, but you wouldn’t know it looking at annual house price growth.”