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Capital appreciation boost for landlords in every region of the UK

Capital appreciation for landlords has seen another surge according to the latest house price index, just released by the Halifax.

It shows house prices on average across the UK rose 1.4 per cent in March - the largest single-month rise for six months - and the average UK house price is now £282,753.

Two years on from the first lockdown, house prices have now risen by £43,577 during the pandemic with the south west overtaking Wales as the location with the strongest house price inflation.

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Halifax managing director Russell Galley says: “With 2021’s strong momentum continuing into the beginning of this year, the annual rate of house price inflation (11.0 per cent) continues to track around its highest level since mid-2007. The new record price of £282,753 is up some £28,113 on a year ago, not far off average UK earnings over the same period (£28,860).

“The story behind such strong house price inflation remains unchanged: limited supply and strong demand, despite the prospect of increasing pressure on households’ finances. Although there is some recent evidence of more homes coming onto the market, the fundamental issue remains that too many buyers are chasing too few properties. 

“The effect on house prices makes it increasingly difficult for first-time buyers looking to make their first step onto the ladder, but also challenges homemovers who face ever bigger leaps to move up the rungs to a larger property.

“However, in the long-term we know the performance of the housing market remains inextricably linked to the health of the wider economy. There is no doubt that households face a significant squeeze on real earnings, and the difficulty for policy-makers in needing to support the economy yet contain inflation is now even more acute because of the impact of the war in Ukraine.

“Buyers are therefore dealing with the prospect of higher interest rates and a higher cost of living. With affordability metrics already extremely stretched, these factors should lead to a slowdown in house price inflation over the next year.”

The south west of England has overtaken Wales as the UK’s strongest performer in terms of annual price house inflation, now up to 14.6 per cent, its highest rate of annual increase since September 2004. The average house price is now £298,162, a record for the region.

While this is the first time since January 2021 that Wales has not recorded the UK’s highest annual growth, house price inflation remains extremely strong, at 14.1 per cent. The average house price is £211,942 which is yet another all-time high for the country.

Property prices in Northern Ireland also continue to be on the rise, with annual growth now at 13%, and an average price of £177,265.

Though house prices also edged up once more in Scotland – reaching a new record of £194,621 – the rate of annual growth continues to slow somewhat, falling to 8.2 from 9.3 per cent last month.

Elsewhere, the south east also recorded a big increase, with house price growth at 11.6 per cent and an average price of £385,790. Prices in the region have now risen by £40,177 over the last year, the first time any English region outside of London has ever posted a £40,000-plus rise over just 12 months.

London itself continued its recent upward trend, with prices now up by 5.9 per cent year-on-year, with an average price of £534,977.

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    The capital appreciation probably only covers the ''TRUE'' rate of inflation

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    Applying my "how many pints of beer is it now worth?" measure I am sure you're right.

    Not only is any cash savings we have eroding through inflation, we're also getting taxed on it!

     
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    How's your liver after all those pints Robert ?

     
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    Andrew

    The opportunity to have all those foregone pints (on average about 40,000 per property) is still tied up in property investment , but one day I might just take some of that opportunity and risk my liver!

     
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    Check the price of gold when you bought the property how many 1 ounces required at the time of buying. Now check today's the possible value of the property and check the current price of gold in 1 ounce . Then you'll find out that the number of ounces did not vary. It would be nice to challenge HMRC when selling the property to find out that the change the value in ounces is either minimal or non existent

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