UK house prices rise at fastest pace since 2004

Property prices in the UK rose by the most since 2004. The average price of a property has hit a record high of £265,312, equivalent to $348,248 (Source: The Guardian)

In March 2022, UK house prices rose at their fastest annual rate since 2004, to a new record.

According to Nationwide, Britain’s largest building association, house prices rose 14.3% year-on-year, the strongest increase since November 2004, when the country experienced a housing boom before the crisis. financial crisis.

The median UK house price in March 2022 was £265,312 ($348,566), up £33,000 from March 2021. Rising house prices are common across the UK, with house prices in Wales also up 15%.

Detached homes have increased in price by 22%, or nearly £68,000, since the start of the pandemic. One reason is attributed to the pandemic, which has caused people to shift to work from home and look for larger homes. This has led to a 14% increase in the average flat price, or £24,000.

House prices have almost continuously increased despite the Covid-19 pandemic causing negative economic impacts, causing a serious decline in all aspects of social life. However, the UK Government’s wage subsidy schemes and lockdown savings have boosted the housing market.

It is estimated that reducing non-essential spending during the pandemic could save families £190 billion compared to pre-pandemic levels, with an average of £6,500 per household.

The British government also intervened with land tax cuts to support the housing sector and help keep prices up as soon as the market opened.

The housing market has maintained a surprising momentum given the growing pressure on household budgets, said Nationwide chief economist Robert Gardner. The combination of strong demand and limited housing supply in the market has created upward pressure on prices.

However, Mr. Gardner expects the market to slow down in the coming months. Household incomes will be increasingly squeezed, with inflation expected to rise further, possibly hitting double digits in the coming quarters if global energy prices remain high, he said.