UK house prices grew 15.5 per cent to £292,000 in the year to July, according to official figures – the highest annual inflation rate since 2003.
The average cost of a home in the UK has continued to spiral as demand outstrips supply.
In just 12-months, property prices have grown £39,000 higher, several thousand pounds above the average annual wage.
Between June and July of this year, house prices have increased by an average of £6,000 – up from a £13,000 fall in the same months last year, the Office for National Statistics (ONS) found today.
Simon Gerrard, managing director of north London estate agency Martyn Gerrard Estate Agents said: “If we didn’t have a chronic under-supply of properties, house prices would unquestionably be falling across the UK – as buyers see their budget crumble due to rising mortgage rates.
“The key question is whether we see Liz Truss take up the challenge to stimulate house building, and in-turn, ease the market’s supply issue. Genuine planning reform is the tonic required, and only Ms Truss has the power to dispense it and get Britain building again.”
Rapidly increasing house prices, combined with mortgage rate rises and a cost of living crisis which is squashing Brits’ spending power, homeowners are increasingly looking to downsize over the next six months, separate research by estate agents Savills found.
Movers choosing to downsize have reported being the least impacted by the rising costs of homeownership, with two-thirds – or 66 per cent – keeping both their budget and funding the same.
Nearly 60 per cent of those deciding to move outside of London have also reported similar easings on their budgets.
“One driving factor behind house hunters wanting to move sooner rather than later are interest rates,” managing director of estate agency Chestertons, Richard Davies, explained.
“With the Bank of England putting up rates more than once this year, buyers have established a stronger sense of urgency.”