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UK house price inflation slowed to 12.1% in April

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
29/04/2022

Despite the pace of growth slowing slightly, average property prices are still rising at an astonishing speed

House price growth slowed in April, but still remains in double digits at 12.1%, said Nationwide.

The building society said prices rose by 0.3% between March and April, taking the average UK property price to £267,620.

Robert Gardner, Nationwide’s chief economist, said: “This is the 11th time in the past 12 months that the annual growth rate has been in double digits.

“Housing market activity has remained solid with mortgage approvals continuing to run above pre-Covid levels. Demand is being supported by robust labour market conditions, where employment growth has remained strong and the unemployment rate has fallen back to pre-pandemic lows. With the stock of homes on the market still low, this has translated into continued upward pressure on house prices.

“We expect the housing market to slow in the quarters ahead. The squeeze on household incomes is set to intensify with inflation expected to rise further, perhaps reaching double digits in the quarters ahead if global energy prices remain high.

“Moreover, assuming that labour market conditions remain strong, the Bank of England is likely to raise interest rates further, which will also exert a drag on the market if this feeds through to mortgage rates.”

Iain McKenzie, CEO of The Guild of Property Professionals, added: “The inexorable rise of house prices is finally showing some signs of slowing as economic realities start to exert some effect.

“This cooling effect looks set to continue in the months ahead, as the cost-of-living crisis encourages buyers to be more cautious about paying over the odds for the right home.

“Potential interest rate rises and the pressures of inflation will come to bear in the coming months, which will increasingly have a dampening effect on the market.”