The cost of detached properties increased by £50,000 over the past year, five times the rate of increase for flats, the Halifax house price index has found.
Detached homes surged by 12% compared to 7.1% for flats, driving the overall rate of house price growth to 10.8% in April.
On a monthly bases prices have surged by 1.1%, the 10th consecutive monthly increase, bringing the average house price to £286,079.
Russell Galley, managing director, Halifax, reckons price growth will slow down in the months ahead.
He feels the number of borrowers with fixed rate mortgages means many will be protected by the upward trajectory of the Bank of England base rate.
Galley said: “For now, at least, despite the current economic uncertainty, the strong increases we’ve seen in house prices show little sign of abating.
“Demand in the housing market remains firm and mortgage servicing costs are relatively stable with fixed-rate deals making up around 80% of mortgages on homes across the industry, protecting many households from the effects of rate rises so far.
“However, the headwinds facing the wider economy cannot be ignored. The house price to income ratio is already at its highest ever level, and with interest rates on the rise and inflation further squeezing household budgets, it remains likely that the rate of house price growth will slow by the end of this year.”
Emma Cox, managing director of real estate at Shawbrook, said: “House price growth has remained exceptionally strong because of high demand and a shortage of housing stock. A large proportion of people are still looking to move this year, with determined buyers acting quickly to secure their purchases.
“However, the squeeze on household budgets and higher borrowing costs are likely to lead to a cooling off in the quarters ahead. Consumer confidence is suffering from the prospect of even higher energy prices and the effects of the war in Ukraine. With more rate rises from the Bank of England on the horizon this will put pressure on mortgage affordability, forcing many homebuyers to review their budgets.
“Despite market pressures, house prices remain at the highest level on record, with annual growth in double-digits. Lenders are continuing to offer new products, flexible rates and attractive LTVs to support the needs of homebuyers and buy-to-let investors.
“It is also essential for landlords and developers to receive the right support from the government to contribute quality, affordable properties to the housing stock.”
Northern Ireland shows strongest price growth
Northern Ireland has overtaken the South West of England as the UK’s strongest performer in terms of annual price house inflation, now at 14.9%, its highest rate of annual growth since December 2007.
The average house price is now £182,565, though this is still some way short of the country’s record high of £230,931, set prior to the financial crisis in the summer of 2007.
Wales, so often the area with the UK’s highest rate of growth in recent months, continues to record strong annual house price inflation of 14.2%. The average house price is £214,396 which is yet another all-time high for the country.
House prices also edged up once more in Scotland – reaching a new record of £196,471 – with the rate of annual growth now at 8.3%.
Elsewhere, six out of nine English regions recorded double-digit annual house price inflation during April.
The South West of England continues to record the biggest increase, with year-on-year house price growth at 14.8% and the average house price now breaking through the £300,000 barrier for the first time (£301,632).
The rate of annual house price inflation in London continues to lag the rest of the UK, with prices now up by 6.2% year-on-year. However, average property values in the capital remain much higher than the rest of the country, with the latest average house price figure of £537,896 a new record for the city.