House prices have shot up in parts of Staffordshire in the last 12 months as the UK saw the second-largest annual rise in well over a decade. Across the county, the average price reached £238,018 in April, according to the latest Land Registry data.
That was 0.6 per cent above £236,571 in March and 11.9 per cent more than a year earlier, when the figure was £212,613. In East Staffordshire, the average housing price in April 2020 was £199,753, however in April 2022 it had risen too 222,123, rising by 11.2 per cent.
In Tamworth, the average house price rose by 16.6 per cent over the year to £228,611 – the biggest increase in the area. That was followed by Stafford, where it went up 12.9 per cent to £254,823, while in South Staffordshire it also rose 12.9 per cent to £294,893.
Overall, Lichfield had the highest average house price, at £310,330, although that represented a slightly more modest 11.0 per cent annual increase. Across the UK as a whole, the average home was valued at £281,161 in April, which was 12.4 per cent (or £31,000) higher than £250,210 a year previously.
That was the second-largest rise in more than 15 years after prices increased by 13.3 per cent in the year to June 2021. This was in part driven by a rush to take advantage of the stamp duty holiday put in place to boost the property market during the pandemic.
Commenting on the latest figures, Chris Jenkins, Office for National Statistics house prices statistician, said: “While annual growth nudged up again in April, this was mainly due to falls seen at this time last year from changes in the previous stamp duty holiday. Wales and Scotland saw the highest growth with London, again, growing the slowest. Rental prices continued to grow steadily overall. However, while still lagging other nations and regions, growth in London continues to pick up.”
Despite rocketing house prices in many parts of the UK, some property experts are predicting the market could slow down in the coming months due to rising interest rates. The Bank of England recently raised interest rates for the fifth time in a row, to 1.25 per cent, in a bid to put the brakes on rising prices by making borrowing more expensive.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said this could be “as good as it gets” for property owners. She added: “These figures reflect house purchase decisions made much earlier, when we had only had the very first of the interest rate rises, and the full horror of the energy price cap hadn’t kicked in. In many cases, buyers will have made an offer before the invasion of Ukraine. This was well before it had a chance to feed so spectacularly into inflation.”