House price growth not set to slow down this spring
The rate of house price growth has been underpinned by a frenzy of house-hunters while stock levels for properties remain low.
According to estate agent Knight Frank, there is no indication that annual house price growth will return to single digits this spring.
Annual UK house price growth accelerated to 12.6 per cent in February 2022 to an average of £260,230, according to the latest figures from the Nationwide Building Society.
The average UK house price topped £260,000 for the first time, having soared nearly £30,000 over the past 12 months.
It may take “a few more months” for growth to abate as “supply builds and sky-high demand begins to fray around the edges,” Tom Bill, head of UK residential research at Knight Frank, said.
“Spring and autumn are traditionally the two most active times of the year for buyers and sellers but the former still outnumber the latter by a wide margin.
According to Knight Frank’s own data, the number of new prospective buyers was 50 per cent higher than the five-year average in February, yet sales instructions were down by five per cent.
The current disparity between supply and demand was partially caused by the stamp duty holiday, with supply dramatically dropping from July 2021 after the end of the full holiday.
Bill added: “Since then, the re-stocking of the shelves has been erratic, not helped by the fact owners have held back due to a shortage of purchase options. It’s a vicious circle that can’t be quickly reversed but the arrival of spring will accelerate the process.”