It has been reported by Nationwide that in March 2022 'house prices grew at the fastest annual pace for more than 17 years' notwithstanding the pressures on living standards with spiralling living costs.
Prior to this, February of this year saw the strongest pace since 2004 as annual house prices hit 14.3% growth with prices now more than a fifth higher than they were when the Covid pandemic hit.
Nationwide, being one of the UK’s biggest mortgage lenders, said that the market has had "a surprising amount of momentum given the mounting pressure on household budgets and the steady rise in borrowing costs".
Why are house prices still increasing?
There are a number of reasons for the continued increase in prices, not least the limited availability in terms of housing stock. When combined with the strength of the UK labour market and consistent demand for housing, such factors could be contributing to a strong housing market.
When will house prices fall?
Nationwide have said they expect house price growth will slow down as the year continues due to high inflation rates and interest rate rises.
A senior UK economist has said the housing market was going from "strength to strength" but that March "probably marks the peak for house price growth".
How has the South West housing market been effected?
Certainly in the South West, we continue to see many enquiries from people looking for a lifestyle change and wishing to relocate to this beautiful part of the country. Logically such lifestyle demand is only going to continue as working patterns change.
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