Senior figures across the property industry have reacted to the latest house price figures released by the Office for National Statistics (ONS).
Headline numbers for May 2022 show the average price of a property in the UK was £283,496, up 12.8% from the previous year and a 1.2% increase from April 2022.
House price growth was strongest in the South West, where prices increased by 16.9% in the year to May 2022. London saw the lowest annual growth, prices up by 8.2% over the previous 12 months.
On a national level, Wales saw the largest annual house price growth (14.4%), while in England it was 13.1%, Scotland saw houses prices increase by 11.2% and in Northern Ireland, house prices increase by 10.4% over the year to Quarter 1 (January to March) 2022.
The Royal Institution of Chartered Surveyors’ (RICS) May 2022 UK Residential Market Survey reported there was a modest decline in buyer demand during May, bringing an end to eight consecutive months of positive readings beforehand.
The Bank of England’s Agents summary of business conditions 2022 Q2 reported a modest increase in the availability of properties for sale across the UK and house price inflation starting to moderate in some areas.
The UK Property Transactions Statistics showed that in May 2022, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 109,210, 5.1% lower than May 2021. Between April and May 2022, UK transactions increased by 1.3% on a seasonally adjusted basis.
Professionals in the UK property industry have commented on these latest figures:
Richard Davies, MD of Chestertons, said: “May of this year surpassed May 2021’s market performance when we had the added stamp duty incentive. This indicates that buyer confidence has returned despite economic challenges. With the Bank of England putting up interest rates more than once this year, many house hunters have also established a stronger sense of urgency to buy before further rate hikes.”
Nick Leeming, chairman of Jackson-Stops, said: “Wider economic factors such as inflation and rising interest rates will naturally begin to squeeze the lower end of the market as the year progresses. But for now, it is playing into the hands of sellers who continue to benefit from the buying buzz, as movers look to lock in competitive mortgage rates ahead of further announcements from the Bank of England. A waning pipeline of new homes from housebuilders will also help to insulate house prices, even if growth levels cool from month to month. This is something that the newest Housing Minister, the 12th in 12 years, will need to tackle head on in order to create a market that works for everyone.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “This most comprehensive of all house price surveys, though a little dated, offers a reliable snapshot of housing market activity. As we are finding at the sharp end, prices are continuing their upward path, despite the impact of 40-year high inflation and five successive interest rate rises. However, the continuing lack of choice, combined with a desire to take advantage of mortgage offers at super-low rates before they expire, have given the market added impetus.”
Lawrence Bowles, director of research at Savills, commented: “While the flow of homes onto the market remains 10.2% below pre-pandemic levels, the number of agreed sales fell to 0.7% below normal levels in June, according to data from TwentyCi. With demand easing and no race to snag a tax break this year, we should expect annualised growth figures to be lower when the June figures are published. With mortgage rates rising and affordability pressures starting to bite, we’re predicting price growth will ease off through the rest of 2022. We’re predicting price growth of 7.5% over 2022.”
