The Office for National Statistics (ONS) has reported that UK average house prices increased by 10.9% over the year to February 2022, up from 10.2% in January.
The average UK house price was £277,000 in February, £27,000 higher than this time last year.
Average house prices increased over the year in England to £296,000 (10.7%), in Wales to £205,000 (14.2%), in Scotland to £181,000 (11.7%) and in Northern Ireland to £159,000 (7.9%).
The ONS said that London continues to be the region with the lowest annual growth at 8.1%.
Sundeep Patel, director of sales at specialist lender Together, said: “Average house prices rose from £275,000 in January to £277,000 in February, fuelled by lingering supply versus demand issues.
“As inflation and energy cost worries mount, the property market inflated further, in part due to excessive demand. More recently, we have seen several banks rush to increase their rates following the Bank of England’s latest interest rise. Caught between the cost-of-living squeeze and higher interest rates, first time buyers hoping to find a deal before the summer months are likely to struggle to climb the property ladder and could find themselves priced out altogether.
“Ongoing economic uncertainty will directly impact people’s ability to spend on property – but at this stage we just don’t know by how much. Over the next few months, we might expect activity to cool as most homeowners opt to stay put and use any available money to meet surging household bills this summer. However, as recent rises have shown, it’s still an unpredictable market.”
Alex Lyle, director of Richmond estate agency Antony Roberts, added: “Although it may not be seeing the fastest levels of growth compared with other parts of the country, London continues its upwards trend in prices, with detached family homes doing particularly well. We continue to see large numbers of viewings, multiple offers and sealed bid scenarios, with buyers on our patch anxious not so much about rising house prices or interest rates but limited choice.
“The housing market has been stubbornly short on supply but more stock is becoming available, particularly in the mid- to upper-family house market, as those properties look their best at this time of year. Sellers are also bringing forward plans in the hope of benefiting from what could turn out to be a real window of opportunity.”