House prices in Northern Ireland rise 15.2% in a year to top the UK list again

Average house prices have risen for the 11th consecutive month in the UK, with Northern Ireland leading the way for annual house price inflation.

House prices rose 1% in May, the 11th consecutive monthly increase with another record average house price at £289,099.

Northern Ireland again topped the list for annual house price inflation this month, with prices rising 15.2%, representing an average of £185,386.

In some UK regions, the picture of 2012 is in stark contrast to that of today.

Ten years ago, NI had experienced a 9.6% annualized house price decline, while the Welsh market saw a 1.2% decline.

Russell Galley, Managing Director, Halifax, said: “The average cost of buying a home in the UK rose by 1% or £2,857 last month and has now risen for 11 consecutive months.

“Annual growth also remains in double digits, at 10.5%, although this is the slowest growth since the start of the year.

“The average cost to buy a home in the UK is now £289,099 which is yet another record high. Despite the very real cost of living pressures that some people are experiencing, the imbalance between real estate supply and demand remains the main reason for the continued rise in house prices.

“For home hunters, the magnitude of the impact of property price inflation remains linked to the type of home they want to buy.

Close to

Table with average house prices and annual change.

“Compared to May last year you would need around £10,000 more to buy a flat but £50,000 more for a detached house. This is clearly creating a knock-on effect for those looking to make their first move as the sports on the housing ladder have become wider and wider.

“However, the housing market is starting to show signs of cooling. Mortgage activity is starting to slow down and, combined with the inflationary pressures currently exerting on household budgets, activity is likely to slow down.

“So there may be one green sprout for aspiring buyers; With aggregate sales demand lower than last year, we may be past the peak seller market.”

As well as Northern Ireland, the South West of England also registered strong annual growth at 14.5%, with an average property cost of £305,173, alongside Wales at 13.7%, where a home is now a record £216,120.

In all, nine regions of the UK recorded annual double-digit inflation, with only Yorkshire and Humber, Scotland and London in single digits.

Nevertheless, buying a home in today’s capital would still require an average of £541,942.

In Scotland, growth is lagging behind the UK average, with an annual inflation rate of 8.3%. A house in the country now costs an average of £198,288.

Over the past decade, the cost of a home has increased by 74%, or £123,016. The strongest inflation was in London (84.2%), followed by the East of England (84.0%) and the Eastern Midlands (82.1%).

In cash, London house hunters need £247,638 more than those looking for ten years ago while those in the East of England need £153,930 and the East Midlands £108,116.

London’s relative underperformance – compared to the UK average – in 2022 is in stark contrast to a decade before. In May 2012, the capital outperformed anywhere else in the UK, with annual house price inflation at 4%.

Overall, the south of England led a recovery in property prices after the recession of 2008 and 2009, with the south east (2.5%) and the east of England (1.7%) being the next best performers.

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