House prices climb in January – but warning that the property market could slow later this year
The UK property market has witnessed a strong start to the year, with the fastest house price growth since 2005.
According to Nationwide’s house price index, house prices rose annually by 11.2% in January 2022, up from 10.4% in December 2021.
As of last month, the average price of a property in the UK was £255,556, which increased by 0.8% from £254,822 in December.
But property experts have predicted that the housing market is likely to slow down later this year due to affordability.
Nationwide have now warned that reduced housing affordability is likely to dampen market activity and house price growth – as people’s household bills are also increased by the wider surge in living costs.
Rob Peters, director of Altrincham-based Simple Fast Mortgage said: “Although 2022 might see more sensible levels of property activity, it’s going to take an interest rate tsunami to put house buyers off.
“Ultimately, people need houses, and as there aren’t enough houses, demand will remain high, and property prices will continue to rise. The lifestyle movers out there might decide not to move, as they don’t really need to anyway.
“First-time buyers, and those who have welcomed a lockdown baby into the household, will continue to hunt for new homes.”
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