Home costs rose by 10.8 per cent final yr, with the value of the common home up by £27,000 to £275,000, in response to official figures.
They reached file ranges throughout Britain in December, the Workplace for Nationwide Statistics mentioned.
The strongest development in costs was recorded in Wales, the place the common home was 13 per cent costlier, reaching a file degree of £205,000 on the finish of final yr in contrast with December 2020. Costs rose by 10.7 per cent in England, with the common worth of a home at a file excessive of £293,000. The common home in Scotland value £180,000, up by 11.2 per cent from a yr earlier and £159,000 in Northern Eire, which rose by 10.7 per cent.
Mike Hardie, head of inflation on the Workplace for Nationwide Statistics, mentioned that home costs had risen throughout the board within the final yr. “Home costs within the UK, England and Wales all reached file ranges this month, with the common UK home worth at £275,000 in December 2021, £27,000 larger than this time final yr,” he mentioned. “UK rental costs accelerated at their quickest tempo since 2017, with will increase throughout each area in England, together with London.”
The shortage of provide of properties is among the major issues confronted by the housing market, in response to Nitesh Patel, strategic economist at Yorkshire Constructing Society. “A key problem within the present housing market is the shortage of provide of properties on the market while demand continues to stay sturdy — which maybe explains the sturdy worth efficiency in southern England,” he mentioned.
Patel added that the stamp obligation vacation boosted home costs for many of final yr however worth rises haven’t cooled off for the reason that scheme, which provided potential consumers financial savings of as much as £15,000, ended on September 30. “Low borrowing prices and a robust jobs market are key drivers however within the coming months an extra deterioration in family funds might take a few of the warmth out of the market,” he mentioned.
Rents paid by tenants to personal landlords rose at their quickest tempo since 2017, in response to separate information printed by the ONS. Non-public rental costs elevated by 2 per cent within the yr to January 2022.
The 0.1 per cent rise recorded in London pulled down the common of three per cent throughout the remainder of the UK. The ONS mentioned that the slower development in rents within the capital mirrored the rise within the provide of rental properties and the rise in dwelling working, which generally means fewer individuals must stay near their office.