UK house prices have now risen at the fastest rate in 17 years

[Mark Rocks]

The UK house prices have risen at the fastest rate since 2004 in March.

Prices are ascending to new record levels, and are now a fifth higher than the start of the COVID19 pandemic, rising 14.3%.

Now the average price of a UK house is £33,000 higher than the same period in 2021, at £265,312.

"Detached homes have gone up nearly £68,000 in price since the start of pandemic, a 22% rise, as people working from home sought out bigger properties, while average flat prices have increased by £24,000, or 14%."

Nationwide's Chief Economist Robert Gardner has warned that he's expecting the market to slow down in the coming months.

https://www.theguardian.com/business/2022/mar/31/uk-house-prices-grow-at-fastest-rate-for-17-years

[Graeme Flynn]

As of April 2022: House price growth was strong in Q1, but will now slow, due to rising mortgage rates and falling real incomes.

 

Several timely indicators of demand, including the RICS new buyer enquiries balance, are starting to soften.

 

House price growth looks set to slow to 4.5% this year, and mortgage approvals will fall to pre-Covid levels. 

 

[rider1000]

Having been in the early 90s recession then I see the same signs. My house, bought in 1988, dropped by 30% and when in 1996 when I sold it it was 8% less than I paid for it 8 years earlier.

People think this can't happen again. But they said that about war with Russia.

There will a sudden crash once Putin uses a tactical nuclear weapon in Ukraine, sadly,  as he is losing.  Unless he is assassinated or deposed before then.

[kasim]

I've just completed the 18-year property cycle course from the Property Hub University. Unfortunately, they didn't tell us at what point in the cycle we're in now.

Can one of the staff draw a graph of actual growth for the past 18 years to show the cycle in action, please?

[Mark Rocks]

Hi @kasim

Thanks for completing the 18-year property cycle course!

In terms of where we're at now, Rob & Rob recorded an episode of the podcast in April which explains where the cycle is up to, and also when they believe the market will crash based on the journey of the cycle:

Definitely worth listening to if you're interested in seeing which part of the cycle we're at right now!