Prices rose 14.3% year-on-year through March, the strongest growth rate since November 2004, when the UK experienced a pre-financial housing boom, according to Nationwide, the UK’s largest construction company. The average house price in the UK reached 26 265,312, over .000 33,000 higher than in March 2021. Price increases were evident across the country, with prices in Wales rising 15% year-over-year . Rising house prices have accelerated in every part of England and Scotland. Homes have risen by almost 68 68,000 in price since the pandemic began, an increase of 22%, as people working from home were looking for larger properties, while average apartment prices have risen by .000 24,000 or 14%. The almost relentless rise in house prices came despite the economic damage from the pandemic, which caused a deep recession in activity. However, government wage support programs and savings during the lockdown have supported the housing market. Nationwide, the cost reduction meant that households were able to save an average of 190 190 billion £ more than expected before the pandemic – 5 6,500 νο per household, albeit unevenly. The government also intervened with stamp duty cuts, which subsidized the housing industry and helped keep prices rising once the market thawed. Subscribe to the daily Business Today email or follow the Guardian Business on Twitter at @BusinessDesk Economists are now trying to determine whether rising inflation (including unprecedented increases in energy bills since Friday, when the price ceiling was raised) and rising interest rates will ultimately affect housing prices. “The housing market has maintained an astonishing momentum due to growing pressure on household budgets and the steady rise in borrowing costs,” said Robert Gardner, chief economist at Nationwide. “A combination of strong demand and limited stock of housing in the market has maintained upward pressure on prices.” However, he said he expects the market to slow down in the coming months. “Household income squeezing is going to intensify, with inflation expected to rise further, possibly to double digits in the coming quarters, if global energy prices remain high,” Gardner said.
