Average House Prices Increase by £25,000 Within The Space Of A Year

The increase exceeded the 9.8 per cent rise seen in October, revealed the Office for National Statistics.

The home rose by 9.8 per cent in England where the average property now costs £288,000.  Within England, the South West had the highest annual house price growth, with average prices increasing by 12.9% in the year to November.

The general consensus being the increases were due to increasing demand is outstripping supply.

However, experts cautioned that with general living costs such as energy bills also rocketing, it is imperative that buyers do not over-stretch themselves when chasing their “dream home”.

The figures were released on the same day that separate ONS figures showed inflation surged to its highest level in nearly 30 years in December, placing a further squeeze on households’ living costs.

The ONS said Consumer Prices Index (CPI) inflation jumped from 5.1% in November to 5.4% in December – the highest level since March 1992.

Although the interest rate rise does not appear to have dented buyers’ confidence and affordability yet this could be set to change with inflation rising to a 30-year high.

In summary, this unprecedented time of ground-breaking house prices looks set to create challenges for the housing market for 2022. Caution is advised that buyers don’t overstretch themselves in pursuit of their dream home.  With the increased interest rates already making an impact on mortgages, rising energy costs look set to influence affordability for first-time buyers with smaller deposits and could also limit more competitive mortgage deals.


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