ONS records big jumps in house prices and resi rents
2022-10-08
PROPERTY WEEK, by Greg Pitcher Wed 14 September 2022
House prices have grown by their largest amount in almost 20 years, while residential rents have also risen sharply, official data has revealed.
Figures from the Office for National Statistics (ONS) today showed that the average UK house cost £292,118 in July this year, a rise of 15.5% in just 12 months. This represented the highest level of annual residential property inflation since May 2003.
Meanwhile, separate ONS data showed the cost of renting a private home rose by 3.4% in the year to August 2022 – the highest annual jump since records began in early 2016.
Rents jumped an extraordinary 8.4% in Northern Ireland in the 12 months to this August. No other home nation has seen annual growth above 4% at any point over the past decade.
James Briggs, head of personal finance intermediary sales at specialist lender Together, said soaring costs to buy or rent a house in the UK came at a time when other household bills were also spiralling.
“Many signs suggest the housing market will cool in the coming months,” he warned. “With the challenging economic outlook and recession expected by the end of the year, household finances are continuing to come under pressure.”
Briggs called on new prime minister Liz Truss to address the challenges in the housing market in her anticipated emergency budget.
Paul McGerrigan, chief executive at broker Loan.co.uk, said the property market had shown “robustness and growth” despite “exceptionally challenging economic times”.
But he added: “While there is still evidence of strong demand, and supply issues with fewer properties coming up for sale, there are some early indications that the market is beginning to cool.”
Gareth Atkins, managing director of lettings at Foxtons, said the estate agent had seen “unprecedented demand” for rental properties in London. Yet availability was dwindling, he added. “This huge imbalance between supply and demand may cause an unseasonably busy quarter to come.”
House prices have grown by their largest amount in almost 20 years, while residential rents have also risen sharply, official data has revealed.
Figures from the Office for National Statistics (ONS) today showed that the average UK house cost £292,118 in July this year, a rise of 15.5% in just 12 months. This represented the highest level of annual residential property inflation since May 2003.
Meanwhile, separate ONS data showed the cost of renting a private home rose by 3.4% in the year to August 2022 – the highest annual jump since records began in early 2016.
Rents jumped an extraordinary 8.4% in Northern Ireland in the 12 months to this August. No other home nation has seen annual growth above 4% at any point over the past decade.
James Briggs, head of personal finance intermediary sales at specialist lender Together, said soaring costs to buy or rent a house in the UK came at a time when other household bills were also spiralling.
“Many signs suggest the housing market will cool in the coming months,” he warned. “With the challenging economic outlook and recession expected by the end of the year, household finances are continuing to come under pressure.”
Briggs called on new prime minister Liz Truss to address the challenges in the housing market in her anticipated emergency budget.
Paul McGerrigan, chief executive at broker Loan.co.uk, said the property market had shown “robustness and growth” despite “exceptionally challenging economic times”.
But he added: “While there is still evidence of strong demand, and supply issues with fewer properties coming up for sale, there are some early indications that the market is beginning to cool.”
Gareth Atkins, managing director of lettings at Foxtons, said the estate agent had seen “unprecedented demand” for rental properties in London. Yet availability was dwindling, he added. “This huge imbalance between supply and demand may cause an unseasonably busy quarter to come.”
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