The pace of property and rental price rises in the UK has sped up, according to the latest figures, as a cost of living crisis shrinks household budgets.
Rents in the UK rose by three per cent in the year to June, up from 2.8 per cent in the 12-months to May.
House prices increase 12.8 per cent in the year to May to £283,000, up from 11.9 per cent in April, the Office for National Statistics revealed today.
The average cost of a home has jumped by £32,000, more than the average annual wage of £31,252.
“It is hard to see how there will be a property crash when the shortfall in property stock remains a constant problem. Though rising interest rates are tempering buyers’ enthusiasm, in historic terms borrowing costs still present reasonable value,” managing director of London-based property finance specialist Advias, Edward Checkley, said.
“Looking forward to 2023, should inflation not fall and interest rates continue to rise, property values may see a correction to compensate for additional finance costs,” Checkley continued. “However, this may not be the case if inflation eases and interest rates remain relatively attractive. We may see short-term corrections in regional locations, where buyers fought over idyllic property and areas during the pandemic.”