Landlords’ capital appreciation running high in reg…

Landlords’ capital appreciation running high in reg…

Specifically, seven regions of the UK are now seeing double-digit annual house price inflation, highlighting not only the strength but the breadth of gains across the country. 

Wales was once again the strongest performing nation or region, with annual house price growth of 13.8 per cent, largely unchanged since January, with the average property price rising to £207,184. 

The South West of England also continues to record big gains. Annual house price inflation is now up to 13.4 per cent, with by far the strongest quarterly growth (3.5 per cent) of any region with an average house price of £293,968.

The Halifax says that while there will be a variety of local factors influencing the strength of these respective housing markets, it’s notable that both areas benefit from greater availability of more rural, scenic living which has proven to be so popular amongst buyers throughout the pandemic. 

 

 

Elsewhere Northern Ireland also continues to record strong price growth, with prices up 13.1 per cent on this time last year, giving an average property value in February of £173,911. 

House price growth remains robust in Scotland too at 9.2 per cent annually – although remarkably Scotland now has the ‘weakest’ rate of annual growth of any area outside of London, again testament to the strength of house prices right across the UK. The average property price edged up to £193,777 in February. 

London remains the weakest performing area of the UK, though the capital continued its recent upward trend with annual house price inflation now standing at 5.4 per cent, its strongest level since the end of 2020. 

Halifax managing director Russell Galley says: “Two years on from the start of the pandemic, average property values have now risen by £38,709, or 16 per cent, since February 2020.”

He continues: “Lack of supply continues to underpin rising house prices, with recent industry surveys showing a dearth of new properties being listed, now a long-term trend. This may be a particular issue at the larger end of the property market. Over the past year the average price of detached properties have risen at a rate more than four times that of flats in cash terms. 

“Looking ahead, as Covid moves into an endemic phase and almost all domestic restrictions are removed, geopolitical events expose the UK to new sources of uncertainty. The war in Ukraine is a human tragedy, but is also likely to have effects on confidence, trade and global supply chains. 

“Surging oil and gas prices are one immediate consequence, meaning that inflation in the UK – already at a 30-year peak – will remain higher for longer. This will add to the squeeze on already stretched household incomes. While increases in Bank Rate look likely in the near term, the extent of the rises will depend on how it affects prices and companies’ approaches to pay over the months to come. 

“These factors are likely to weigh on buyer demand as the year progresses, with market activity likely to return to more normal levels and an easing of house price growth to be expected.” 

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https://www.landlordtoday.co.uk/breaking-news/2022/3/landlords-capital-appreciation-running-high-in-regions-outside-london

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