What has happened to House price growth and the value of your home since the onset of the first lockdown two years ago?
New figures from lender Halifax show the average UK home has risen in value by £43,577 since the onset of the Covid-19 pandemic.
According to Halifax, house price growth saw an 18.2% increase in typical house prices means the average home is now worth £282,753.
However, within these figures is some disparity based on the type of home.
During the pandemic, one feature of the property market was a ‘race for space’ as families looked for larger homes and gardens, spending more time living and working at home.
Detached homes rose in average value by 21%, but flats rose just 11% during the same period.
One factor helping to drive up property prices throughout the past two years was reduced supply, combined with solid demand from buyers.
Russell Galley, managing director of Halifax, said:
“The story behind such strong house price inflation remains unchanged: limited supply and strong demand, despite the prospect of increasing pressure on households’ finances.
“Although there is some recent evidence of more homes coming on to the market, the fundamental issue remains that too many buyers are chasing too few properties.”
In the year to March 2022, average prices rose by 11%.
A different house price survey from lender Nationwide reports a 14% increase in home values during the same period, representing the fastest growing property market in 17 years.
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Despite robust property prices in the past two years, it is widely believed that growth will now slow due to rising interest rates and the cost of living crisis.
The independent Office for Budget Responsibility forecast shows the property market slowing during the next five years.
Looking to the future, Russell Galley said of the long-term outlook, “we know the performance of the housing market remains inextricably linked to the health of the wider economy.”
