1 February 2022
House prices increased yet again in January, rising by 11.2% over the year, the latest data from Nationwide has revealed.
According to the mortgage lender, house prices climbed by 0.8% from December meaning January was the strongest start to the year for residential property price growth since 2005.
The average UK house price, according to the Nationwide House Price Index, is now £255,556.
Robert Gardner, Nationwide’s chief economist, said: “The total number of property transactions in 2021 was the highest since 2007 and around 25% higher than in 2019, before the pandemic struck.
“At the same time, the stock of homes on estate agents’ books has remained extremely low, which is contributing to the continued robust pace of house price growth.”
He thinks, despite this early growth, the market will most likely start cooling as 2022 progresses.
“House price growth has outstripped earnings growth by a wide margin since the pandemic struck and, as a result, housing affordability has become less favourable,” he explained.