The Office for National Statistics (ONS) has reported that UK average house prices increased by 9.8% over the year to March 2022.
This was down from 11.3% in February 2022.
The average UK house price was £278,000 in March 2022, £24,000 higher than this time last year.
Average house prices increased over the year in England to £298,000 (9.9%), in Wales to £206,000 (11.7%), in Scotland to £181,000 (8.0%) and in Northern Ireland to £165,000 (10.4%).
London continues to be the region with the lowest annual growth at 4.8%.
Peter Beaumont, CEO of The Mortgage Lender, said: “March has, again, withstood fears of slowdown in the property market continuing the trajectory of high momentum and price growth. Motivated buyers are still driving demand and bidding wars are pushing prices further.
“However, with UK GDP falling in March and the cost of living eating into incomes there is a real concern that the market’s performance over the last few years has run its course. Many are expecting buyers’ appetite to buy to reduce, while affordability will become an even bigger obstacle for many looking to step on or up the ladder.
“Responsible lenders will be paying close attention to affordability checks and will need to prudently assess each applicants’ real-life circumstances and ensure they can cope with further rises in costs expected in the short-term.
“For those homeowners nearing the end of their fixed term, remortgaging will be a priority as further rate increases are expected from the Bank of England in the coming months to combat rising inflation and a shrinking economy.”
