Housing market demand has pushed the average property price past £250,000 (£250,200) for the first time according to Zoopla’s latest House Price Index. However, signs of a slowdown are emerging as homeowners face increasing pressure on their finances thanks to the surge in the cost of living.
Rising house prices paired with increased interest rates mean the cost of repayments for a new mortgage for an average UK home has risen by £71 a month - equating to £852 a year since the start of the pandemic (April 2020) and is further squeezing households already impacted by the cost-of-living crisis.
Properties in Wales remain popular with buyers showing the strongest rates of house price growth for the 15th consecutive month at 11.6%, growth in London is lagging with the slowest rate of growth at 3.6%.
The housing market is still much busier than pre-pandemic norms, but signs are emerging that a slowdown is coming. While house prices were up by 8.4% y-o-y in April, this was down from 9% in March and the rate of annual house price growth is set to fall to 3% by the end of 2022.