UK house prices are rising at their fastest rate with the typical property notching up its biggest annual cash gain in the nearly 40 years since the lender’s index began. Two years on from the start of the coronavirus pandemic, commentators say the housing market is continuing to defy economic conditions, with average property prices rising by another 0.5% in February, equating to £370 a week. It was the eighth month in a row that property values had risen, pushing up the annual rate of price growth to 10.8%, the highest figure since June 2007. The price of a typical home has risen by more than £38,000 since February 2020, and during the last 12 months alone £27,200 has been added to the value. Estate agents and others have said a shortage of homes for sale is continuing to drive prices up, while the pandemic has prompted many people living in urban areas to look at relocating somewhere with more open space, such as a village or small town in the countryside or by the sea.
However, the events in Ukraine are expected to help put the brakes on the market.