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House Prices Rise at Fastest Rate Since 2007 Posted: 9th March 2022
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According to the latest figures from the Halifax House Price Index, house prices went up by 10.8% on an annual basis in February 2022. This is the fastest rate of growth for 15 years when house prices went up by 11.9% on an annual basis in 2007. This now means that the average gain since the Halifax House Price Index launched 39 years ago.

Halifax also reports that since the start of the pandemic in March 2020, house prices have risen by 16% or £38,709.  House prices have risen by 0.5% in February or £1,478 in value this is the 8th monthly increase in a row.

According to the Halifax managing director, the high levels of buyer demand will ease off as 2022 moves into the summer and with the cost of living rising, house price growth will start to slow down.

Over the last few weeks we have seen the invasion of Ukraine which has shaken the UK’s economy, in particular impacting our fuel prices which are becoming unaffordable for many people. This will dampen people’s resolve to move home as we wait to see how things progress. With the world turning its back on Russian energy, house prices could be affected.  Food prices are also looking like they will rise with the price of wheat also set to soar.

The result could be that first-time buyers and second steppers will have less disposable income making them carefully consider whether they can afford to purchase a move home. However, this could be offset later in the year as mortgage companies look set to relax mortgage affordability rules.

In addition to these purchasing barriers, saved house deposits could be further eroded by inflation reducing people’s spending power. The Bank of England before the Ukraine conflict predicted inflation to peak at 7.25% in April, but the current situation in Eastern Europe could cause it to go higher and stay that way for longer.

The result could be increased interest rates which would mean that lenders reduce the availability of the cheaper mortgage deals on offer. This will further price people out of the market and potentially make others think carefully before moving home.

This year could mean that house price growth slows to more normal levels and stock levels increase. Zoopla reported this week that new home listings were 5% higher in January than in the previous five-year average.


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