ONS: House price growth hits 12.8% in last hurrah

UK house price growth reached 12.8% in May 2022, jumping from 9.5% in March, the ONS House Price Index has found.

The South West is seeing the highest house price growth (16.9%), followed by the East Midlands (15.2%) and the West Midlands (14.8%).

Richard Davies, managing director of Chestertons, said: “May of this year surpassed May 2021’s market performance when we had the added stamp duty incentive. This indicates that buyer confidence has returned despite economic challenges.

“With the Bank of England putting up interest rates more than once this year, many house hunters have also established a stronger sense of urgency to buy before further rate hikes.”

“Our branches receive enquiries from families, couples and investors but, particularly post-pandemic, we are seeing an uplift in the number of international students, international buyers as well as office workers who require a pied-à-terre closer to work.”

London has the lowest annual growth at 8.2%, as the capital has been recovering from a pandemic-induced drop in demand.

Despite the high headline figures Danny Belton, head of lender relationships, Legal & General Mortgage Club, said house prices are now longer rocketing.

He added: “The cost-of-living crisis will inevitably drain some of the fuel for further growth, but our market enjoys strong and stable demand, so we could still see small increases to prices before the year is out.

Similarly Richard Eagling, personal finance expert at NerdWallet, said: “A cooling off period for the property market still seems to be in the offing, and it is always important to note that the ONS house price index tracks a couple of months behind others, so it was unlikely that today’s data would show any slowdown in price growth just yet.”


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