House prices surge 9.3% to yet another fresh record

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House asking prices surge 9.3% to yet another fresh record – as Rightmove revises up 2022 forecasts amid continued shortage of homes

  • Average asking prices rose by 9.3% to £369,968 in July, down from 9.7% in June
  • Prices have now surged to a record high for six months in a row
  • Rightmove revised up its 2022 forecasts, expecting growth of 7% instead of 5% 
  • That still marks a slowdown from the current level of house price inflation 

House asking prices rose to hit another record high this month, according to Rightmove, as demand for homes to buy continues to outstrip supply.

The average asking price of a UK property rose by 9.3 per cent to £369,968 in the year to July, marking the sixth consecutive month that a record high was recorded.

The pace of growth slowed down slightly from June’s 9.7 per cent growth, but the property website has revised up its forecasts for the year as it believes supply will continue to struggle to meet strong demand.

Rightmove predicts house prices will rise by 7% this year, up from previous forecasts of 5%

Rightmove predicts house prices will rise by 7% this year, up from previous forecasts of 5%

It now predicts asking prices to rise by 7 per cent in 2022, up from a previous forecast of 5 per cent.

That is in contrast to recent predictions by Capital Economics, which said house prices in Britain could fall by up to 10 per cent ‘soon’ as rising interest rates cause property markets across the globe to crash.

Rightmove said the number of new sellers coming to market is up by 13 per cent compared to this time last year, but available homes to buy are still 40 per cent down on June 2019 levels. This is expected to keep pushing prices higher. 

Demand from would-be buyers is also a quarter higher than it was in June 2019, according to the property portal, although it is coming off the boil from last year’s frenzied market, falling 7 per cent. 

Rightmove’s director of property science, Tim Bannister, said: ‘With such an imbalance remaining between supply and demand, prices look underpinned, and we would therefore only expect typical smaller seasonal month-on-month falls, rather than more significant price falls in the second half of the year. 

‘This has led to us revising our annual price growth prediction for the end of the year from 5 per cent growth to 7 per cent, although this would still mark a slowing from the 9.3 per cent seen this month.’ 

Prices have now surged to a record high for six months in a row, Rightmove said

Prices have now surged to a record high for six months in a row, Rightmove said

The data echoes recent findings by RICS, which said a lack of housing stock continues to drive the rise in house prices despite a fall in demand.

However, estate agents also noticed a fall in interest from buyers, which is translating into a drop in sales. 

South West and Yorkshire & Humber top tables  

Looking at regional trends, Rightmove said the South West and Yorkshire & Humber saw the fastest annual pace of growth, with average asking prices rising by 12.2 per cent and 12.1 per cent respectively.

However, on a monthly basis, prices dropped by 0.6 per cent in the South West, while in Yorkshire they kept rising even month-on-month, adding another 1 per cent. 

Ben Hudson, managing director at estate agents Hudson Moody in York, said they were not surprised about the strong growth in York, where prices rose by 11.6 per cent.  

‘The shift since Covid to being allowed to work from home has meant a steady flow of buyers from London have relocated to York due to its connectivity,’ he said. 

‘Yorkshire is still significantly cheaper than the South East and this is driving prices upwards.’

London saw the slowest annual price growth of 7.4 per cent, with prices accelerating by 1.6 per cent on the previous month. 

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