UK average house prices increased by 10% over the year to November 2021, up from 9.8% in October 2021, according to the Office for National Statistics’ (ONS) UK House Price Index.
Pendelton said: “Just when you think the balance must shift in the favour of buyers, new armies of house hunters crawl out of the woodwork.”
She added that the way property price growth has strengthened on an annual basis underlines the fact that this is a long-lasting rally.
However, she said the headwinds that will undoubtedly slow the market later this year are already starting up.
She said: “This is the same month that wages dropped in real terms for the first time in over a year, mortgage approvals aren’t outstripping historic averages any more and, if inflation hits a decade high of 6% by April as expected, it will have doubled in just seven months.”
Due to this, Pendleton believes it indicates the days of annual growth stretching into double figures are numbered.
Pendleton concluded: “Official suggestions that these levels of inflation are a blip are a distant memory and first-time buyers, in particular, are all too aware of that.
“It’s no wonder they’re still clambering onto the housing ladder in large numbers while they still can. For a minority of them it may be now or never.
“If first-time buyer affordability is stretched any further, this will also have significant ramifications for the wider market over the coming year.”
