Average UK house price rises £31,000 in year to April

While prices remain high, experts suggest momentum will soon stablise.

The value of an average UK house increased by £31,000 in the year leading up to April, according to the latest ONS House Price Index.

“The average UK house price was £281,161 – a record high - in April 2022; in cash terms this represents an increase of £30,951 in the past year, which is more than what many earn,” said Nitesh Patel, Strategic Economist at Yorkshire Building Society.

It means in the year to April house prices increased by 12.4%. In comparison, in the year to March this increase stood at 9.7%.

“Even following last year’s frenetic levels of activity, it is clear to see that the UK housing market hasn’t yet run out of steam, even if there are signs that momentum is starting to stabilise,” said Kevin Roberts, Director at Legal & General Mortgage Club.

It is a similar sentiment shared by Patel, who believes the imbalance between supply and demand stabilising.

“A key challenge in the current housing market is the lack of supply of homes for sale whilst demand continues to remain strong – there are some tentative signs that this imbalance may be easing,” he explained.

The average house price in England almost hit £300,000, increasing in value by 11.9% over the year to April.

Meanwhile, house prices in Scotland and Wales saw bigger percentage increases of 16.2% respectively.

Despite recording the highest average house price in the UK at £530,000, prices in London rose at the slowest pace across all regions in the UK.

Much of this performance in London can be attributed to Russia’s war in Ukraine, with Russian demand for luxury property in the capital waning ahead of government sanctions according to Marc von Grunderr, Director of Benham and Reeves.

“With the financial pedigree of homebuyers in the capital amongst the strongest in the world, rising inflation and the increasing cost of buying are far less likely to act as a deterrent and we expect the London market to stand firm over the coming months,” he said.