In news that won’t come as a surprise to anyone that checks the headlines, the price of a home continues to rise! According to recent house price data from GOV.UK, the price of a home in the UK increased by 9.8% year on year in March 2022.
This means that, to get the home of their dreams, the average home-buyer would have to part with £278,000 - a considerable £24,000 higher than this time last year. However, there may be a light at the end of this dark tunnel. The rate of growth is slower than in previous months (annual house price inflation fell from 9% in March to 8.4% in April), suggesting an end to price hikes may well be in sight!
What explains the rise in house price growth?
While it’s difficult to find one single cause for soaring house growth, a lot of this can be attributed to the impact of Covid and March 2020’s lockdown. Aspiring first-time buyers faced an uncertain financial future, forcing them to momentarily put their dreams of home ownership on hold.
But when restrictions were lifted, the housing market saw huge demand as homebuyers raced to get the keys to their new home. And let’s not forget the introduction and extension of Stamp Duty Holidays, which made it an even more popular time for home-buying. In other words, business was booming - and with increased business, came increased prices.
London still leads the pack as England’s most expensive place to live
Unsurprisingly, London continues to be the most expensive place to live in the UK, and currently has the highest average home price. But it’s not all bad - London was the region with the lowest annual price growth, as the cost of houses elsewhere slowly gathered pace to keep up. London saw a house price growth of just 4.8% in March 2022. Instead, it was the East Midlands that saw the highest annual house price growth, with a 12.4% rise in March 2022.
With an endless supply of things to do and famous attractions to visit, there’s no surprise that London is such a popular place to live. With the financial boost of Shared Ownership, you can put your roots down in a city buzzing with activity, creating memories to last a lifetime. Check out Peabody’s developments by area here.
How does house price growth differ across the UK?
As a result of price increases, England’s average house price hit a record high of £298,000 in March 2022. This was an increase of 9.9% compared to the previous year.
But house growth wasn’t just limited to England - in fact, price increases were higher across the UK. In Wales, the average price of a home increased by 14.5% over the course of a year in February 2022, going down to 11.7% in March. This left the average price of a house sitting at £206,000 in March 2022.
House price growth in Scotland was slightly more modest, increasing by 12.1% in February 2022, and 8.0% in March 2022. As of March, the average house price was left at £181,000. Meanwhile, despite being the cheapest place to live in the UK, the price of a home in Northern Ireland rose by 10.4% to £165,000 in the first quarter of 2022.
Looking for a faster route to the housing ladder?
Getting the home of your dreams may seem tougher than ever, but you can get a shortcut to the housing ladder through Shared Ownership. Giving you the option to buy a share of your home while you pay rent on the part that you don’t own, this is a hugely popular option for first-time buyers looking to buy a home without the hassle of saving a hefty deposit.
Peabody has a range of exquisite new build apartments available through Shared Ownership - you can get your housing journey started here!Find a home with Peabody