UK House prices momentum likely to continue

The Royal Institution of Chartered Surveyors (RCIS) said a net balance of +79% of its members reported a February rise in house prices. This is the highest since June 2021, and is up from +74% in January 2022.

The survey consolidates findings from Nationwide’s Housing Index, which found the average British house price reached £260,230 in February.

Growth in February was 12.6%, up from 11.2% in January 2022.

The average home price has rocketed by almost £30,000 over the last 12 months. This is the largest annual increase in cash terms recorded in Nationwide’s Index, which has existed for 30 years.

The average home costs almost 20% more than in February 2020, a cash increase of £44,140 in 24 months.

Despite a looming cost-of-living crisis, RCIS members expected house price growth in the coming 12 months to remain strong.

Rents were expected to increase by an average 4.5% over the next 12 months. Respondents anticipating rising rents was the highest since December 2012, RICS said.

Simon Rubinsohn, chief economist at RCIS, felt the disparity between supply and demand would enable the continuation of higher prices.

"The risk is that these imbalances exacerbate the cost-of-living crisis and the challenges particularly for those on lower incomes," he said.