Annual house price growth for the regions covering England and Wales climbed to 10.2% in July, the latest e.surv House Price Index has revealed.
This was up from the 9.8% recorded in June, and the 7.9% growth recorded in May.
Prices also climbed by 0.6% on a month-by-month basis in July, taking the average house price for England and Wales up by around £2,400 from June to £370,893.
e.surv, whose data reports all mortgaged and cash sales across England and Wales, stated that the increase in July’s rate reflected the low annual comparison point in July 2021. The average house price for England and Wales stood at £336,483 in July last year, meaning it has risen bay £34,410 over the last 12 months.
“We know the market faces some headwinds that have not yet made themselves felt in the data we are seeing for sale prices to date,” said e.surv director, Richard Sexton.
“But we should not forget that there are also more positive tailwinds that continue to mean residential property is an attractive proposition for many. Full employment and the available returns which our data shows, make housing a good investment choice compared to many other asset groups. There are some buyers and investors fortunate enough to be more immune to interest rate rises so far and they are still buying and selling.
“It may feel like a lifetime ago, but from the outset of the pandemic in the first quarter of 2020 to the end of June 2022, the average house price has increased by some £52,600, or 16.7%. This contrasts with the increase in consumer price inflation (including housing - CPIH) of 11.0% over the same period. Property prices have risen in real terms.
“Obviously increasing rates will impact appetites and create affordability issues for some, but the supply issues facing the market remain a force for maintaining pressure for house price growth.”
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