Cost of living pressures will weigh on UK housing market ahead, Halifax MD warns.
The average value of house prices in the UK rose to a fresh record high in March, as prices rose at the fastest monthly rate in 6 months, Halifax, the UK's largest mortgage lender said Thursday. Prices rose 1.4% m/m and 11.0% y/y, pushing the average property to GBP282,753.
Two years on from the first lockdown, house prices have now risen by GBP43,577, the Halifax said. However, Russel Galley, group managing director, warned that cost of living pressures will likely slow the rate of house price growth this year.
“Buyers are therefore dealing with the prospect of higher interest rates and a higher cost of living. With affordability metrics already extremely stretched, these factors should lead to a slowdown in house price inflation over the next year,” he said.