Average 海角视频 house prices have surged by tens of thousands of pounds in just one year, new data from Nationwide has revealed.
The cost of a typical home in Britain climbed to a record high of £265,312 in March - up more than £33,000 on the same time last year.
Property values grew by 14.3% annually – the strongest pace of increase since 2004. Prices are now 21% higher than before the pandemic struck in early 2020, Nationwide said.
The number of mortgages approved for house purchase remained high in February at around 71,000 - nearly 10% above pre-pandemic levels.
Nationwide said it was becoming harder for homeowners to trade up, with price gaps between different property types moving to a record high.
"The housing market has retained a surprising amount of momentum given the mounting pressure on household budgets and the steady rise in borrowing costs," said Robert Gardner, Nationwide’s chief economist.
"A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices."
Mr Gardner said the buoyancy of housing demand could be in part explained by strong labour market conditions.
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"The unemployment rate has continued to trend down in recent months from already low levels. Wage growth has accelerated, though it is running below inflation," he said.
Nationwide said savings accrued during lockdowns were also likely to have helped prospective homebuyers raise a deposit. The building society estimated that households accrued an extra £190bn of deposits over and above the pre-pandemic trend since early 2020, due to the impact of Covid on spending patterns - equivalent to around £6,500 per household.
"It is important to note that these savings were not evenly spread, with older, wealthier households accruing more of the increase," added Mr Gardner. "Nevertheless, we still think that the housing market is likely to slow in the quarters ahead.
“The squeeze on household incomes is set to intensify, with inflation expected to rise further, perhaps reaching double digits in the quarters ahead if global energy prices remain high."
Nationwide said that if labour market conditions remained strong, the Bank of England was likely to raise interest rates further, which would also exert a drag on the market if fed through to mortgage rates.
The average value of a detached home has increased by £68,000 since early 2020, while the average price of a flat has increased by £24,000, according to the building society.
Mr Gardner said: “Consequently, it is becoming more difficult for existing homeowners to trade up, with the price gaps between different property types now at a record high.
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“This is particularly acute for those looking to move from flats to terraced houses, where the price gap has more than doubled since the onset of the pandemic (from around £12,000 to over £25,000).”
Nationwide’s figures also show Scotland recorded a 12% year-on-year rise in house prices in the first quarter of this year, marking the strongest rate of growth since the third quarter of 2007.
Average 海角视频 house prices in first quarter of 2022 and annual increase
– Wales, £201,502, 15.3%
– South West, £300,936, 14.4%
– East Anglia, £277,332, 14.2%
– Yorkshire and the Humber, £199,235, 13.5%
– East Midlands, £227,275, 13.5%
– Outer South East (includes Ashford, Basingstoke and Deane, Bedford, Braintree, Brighton and Hove, Canterbury, Colchester, Dover, Hastings, Lewes, Fareham, Isle of Wight, Maldon, Milton Keynes, New Forest, Oxford, Portsmouth, Southampton, Swale, Tendring, Thanet, Uttlesford, Winchester, Worthing), £337,094, 12.8%
– North West, £204,511, 12.4%
– Scotland, £178,289, 12.0%
– West Midlands, £233,136, 11.7%
– Outer Metropolitan (includes St Albans, Stevenage, Watford, Luton, Maidstone, Reading, Rochford, Rushmoor, Sevenoaks, Slough, Southend-on-Sea, Elmbridge, Epsom and Ewell, Guildford, Mole Valley, Reigate & Banstead, Runnymede, Spelthorne, Waverley, Woking, Tunbridge Wells, Windsor and Maidenhead, Wokingham), £422,428, 11.4%
– Northern Ireland, £171,095, 11.1%
– North East, £153,029, 10.6%
– London, £518,333, 7.4%