House Price Watch Mar 2022
Average annual house price growth hit another record in March rising to 12.1%. Rapid house price inflation is being driven by a huge imbalance between buyer demand and homes for sale. However, there are signs this is improving with more new sales instructions this month. Headwinds including the rising cost of living and rising mortgage rates are expected to slow housing market activity and house price growth later this year.
What’s happening nationally
House prices are up on average +1.0% in the past month and +12.1% in the past year.
Indices based on:
Land Registry – registered property transactions in February.
Nationwide & Halifax – mortgage valuations in March.
Rightmove – asking prices posted on Rightmove in March.
*Rightmove is not included in the index average as the basis for its index is different (asking price vs agreed sale price)
| Index reports: | Monthly change | Annual change |
|---|---|---|
| Land registry | +0.5% | +10.9% |
| Nationwide | +1.1% | +14.3% |
| Halifax | +1.4% | +11% |
| Rightmove | +1.7% | +10.4% |
| Average change | +1.0% | +12.1% |
House prices in your area
Monthly changes in house prices have been mixed over the past month with some areas seeing a continued rise and others seeing some drops.
Most areas of the UK have seen a rise in annual house price growth of 10% or more over the past year. The exceptions are Norther Ireland (7.9%), London (+8.1%), the North East (+9.4%) and Yorkshire & Humber (+9.5%).
Average house prices are highest in London and lowest in the North East.
House price growth also varies by property type. Detached homes have seen the biggest rise (+14.4%) and flats/ maisonettes the smallest (+8.1%) according to Land Registry data. This may reflect regional price differences (more flats in London), as well as, demand – higher demand for bigger properties and fewer properties of this type available for sale over the past year.
| UK Region | Average price £ | Monthly change | Annual change |
|---|---|---|---|
| England | |||
| Nothern Ireland | |||
| Scotland | |||
| Wales | |||
| North West | |||
| Yorkshire and The Humber | |||
| North East | |||
| West Midlands | |||
| East Midlands | |||
| South West | |||
| East of England | |||
| South East | |||
| London |
| UK City | Average price | Annual change |
|---|---|---|
Market Monitor
March transaction data not yet available. February transactions lower than February last year but above average compared to historical levels for this time of year.
Improving balance between demand and supply but Rightmove report twice as many buyers as sellers and average stock levels remain low.
March time to sell figures not reported yet. February on par with quickest months in last 12 months.
How busy is the market?
- Not busy
- Normal
- Very busy
- March transactions not yet reported
- Total transactions in Feburary 112K
- +4% from last month
- -21% lower than February last year
Homes for sale vs homebuyers
- Good availability of homes
- Normal
- Shortage of homes
- Buyer enquiries up (+9% RICS); buyer demand continues to rise
- Seller enquiries up (+8% RICS); closer balance with demand
- Average stock per agent 41; up slightly (incl under offer/ Sold STC Rightmove)
Average speed of sale
- Fast
- Normal
- Slow
- 36 days to find a buyer down from 44 days last month (12 month average 40 days Rightmove)
What the experts say
Rightmove
“The price of property coming to market has hit a new record high for the second consecutive month. This month’s increase is the largest at this time of year since March 2004. In addition, the annual rate of growth is the highest that Rightmove has recorded in any month since June 2014. This unprecedented price level is being stoked by the greatest imbalance between buyer demand and the number of properties available for sale that we have ever measured at this time of year. There are now more than twice as many buyers as sellers active in the market, which is the biggest mismatch between supply and demand that we have ever recorded at this time of year. This is the strongest spring sellers’ market that we have ever seen in several metrics.”
Nationwide
“March saw a further acceleration in annual house price growth, the strongest pace of increase since November 2004. The housing market has retained a surprising amount of momentum given the mounting pressure on household budgets and the steady rise in borrowing costs. A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices. Nevertheless, we still think that the housing market is likely to slow in the quarters ahead. The squeeze on household incomes is set to intensify, with inflation expected to rise further. Moreover, 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.”
Halifax
“With 2021’s strong momentum continuing into the beginning of this year, the annual rate of house price inflation continues to track around its highest level since mid-2007. Although there is some recent evidence of more homes coming onto the market, the fundamental issue remains that too many buyers are chasing too few properties. The effect on house prices makes it increasingly difficult for first-time buyers looking to make their first step onto the ladder, but also challenges homemovers who face ever bigger leaps to move up the rungs to a larger property. However, in the long-term we know the performance of the housing market remains inextricably linked to the health of the wider economy. With affordability metrics already extremely stretched, these factors should lead to a slowdown in house price inflation over the next year.”
Zoopla (Hometrack)
“High buyer demand and rising supply signal activity levels will remain elevated in the short term. As we move into H2, economic headwinds, including the rising cost of living and rising mortgage rates will act as a brake on price growth, with annual value rises returning to more sustainable levels.”
RICS
“March 2022 results point to a continued moderate rise in housing market activity over the month, with respondents anticipating this picture will remain in place over the near-term. That said, contributors do appear cautious about the potential impact of macro headwinds on the market, with concerns on issues such as the rising cost of living and higher interest rates highlighted.”
