Average UK house price exceeds £260,000 for first time
I really do worry on the strength of this story that rural places are becoming even more challenging for people of modest means to live. It tells us:
A shortage of homes for sale last month sent house price growth spiralling for the seventh consecutive month to 12.6%, prompting concerns that property values are moving further out of reach of first-time buyers.
Prices of the average home increased by 1.7% in February to more than £260,000 for the first time, said the building society Nationwide, accelerating the pace of growth from 11.2% in January.
Analysts, who expected a smaller increase in prices last month, said the ending of Covid restrictions enforced because of the Omicron variant and the threat of several interest rate rises this year from the Bank of England also spurred buyers to secure homes ahead of the peak Easter buying period.
Stiff competition between lenders for mortgage business, which has driven the offers for fixed-rate mortgages lower in recent months, was another factor driving prices higher.
Nationwide said the increase pushed the average British house price to £260,230, after soaring by almost £30,000 over the past 12 months – the biggest annual increase in cash terms that its monthly index has recorded in more than 30 years of its existence.