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Halifax House Price Index: Welsh House Prices Set New Record

Data from November 2021’s Halifax House Price Index shows that the average house price in Wales has reached its highest since records began, amongst an ongoing UK-wide house price growth spree.

Residential People has seen that not only have the average house prices in Wales rose to above the £200,000 mark for the first time ever, but that across the UK, house prices have grown to a 15-year high.

As revealed in the UK’s longest-running monthly house price series, the average house price in the UK is now £272,992, with a quarterly inflation rate now at its strongest since late 2006. The new average price also shows an annual change of +8.2% compared to this time last year, and also a slight 1% increase from last month’s results.

Commenting on the findings, Russel Galley, Managing Director of Halifax, said: “UK house prices rose again in November, with the value of the average property increasing by another 1%, or £2,808, tipping the annual rate of inflation up to 8.2%. This is the fifth straight month that average house prices have risen, with typical values up by almost £13,000 since June, and more than £20,000 since this time last year.”

Since the COVID-19 pandemic and lockdowns began in the UK in March 2020, house prices across the country have risen by a staggering average of £33,816.

Put into perspective, the rise in house prices over the past 20 months equates to the average cost of buying a home increasing by £1,691 per month.

With these figures in mind then, it’s no surprise to see why organisations say that the UK is undergoing a housing crisis.

Source: Halifax House Price Index

As shown in the graphic above, affordable homes are in increasingly short supply throughout the UK as inflation hits up to nearly 15% in Wales alone.

Commenting on inflation, Russel states: “Those taking their first step onto the property ladder are also playing an important role in driving activity, with annual house price inflation for first-time buyers at 9.1% compared to 8.8% for homemovers.”

Looking ahead to 2022, Russel adds: “There is now greater uncertainty than has been the case for quite some time, with interest rates expected to rise to guard against further increases in inflation.

“Economic confidence may be also be dented by the emergence of the new Omicron virus variant, though it remains far too early to speculate on any long-term impact, given insufficient data at this stage, not to mention the resilience the housing market has already shown in challenging circumstances.

“Leaving aside the direct impact of a possible resurgence in the pandemic for now, we would not expect the current level of house price growth to be sustained next year given that house price to income ratios are already historically high, and household budgets are only likely to come under greater pressure in the coming months.”

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