In an article out out today in Property Industry Eye Marc De Silva reports that the average UK property price hit a record high of £270,027 in October, up 0.9% month-on-month, according to the latest Halifax House Price Index.
Annual house price inflation now stands at 8.1%, up from 7.4% a month earlier.
Wales, Northern Ireland and Scotland continue to outperform the UK average.
Russell Galley, managing director at Halifax, said: “UK house prices climbed again in October, as the value of the average property grew by 0.9%, an increase of more than £2,500 during the month. With prices rising for a fourth straight month, the annual rate of inflation now sits at 8.1%, its highest level since June.”
Gallery explained that one of the key drivers of activity in the housing market over the past 18 months has been the race for space, with buyers seeking larger properties, often further from urban centres. Combined with temporary measures such as the cut to stamp duty, this has helped to drive up the average property price. Since April 2020, the first full month of lockdown, the value of the average property has soared by £31,516 – up 13.2%.
First-time buyers, supported by parental deposits, improved mortgage access and low borrowing costs, have also helped to drive price growth in recent months.
First-time buyer annual house price inflation, which stands at an average of 9.2%, is now at a five-month high, and has pushed ahead of the equivalent measure for homemovers – at 8.1%.
He continued: “More generally the performance of the economy continues to provide a benign backdrop to housing market activity. The labour market has outperformed expectations through to the end of furlough, with the number of vacancies high and rising relative to the numbers of unemployed.
“With the Bank of England expected to react to building inflation risks by raising rates as soon as next month, and further such rises predicted over the next 12 months, we do expect house buying demand to cool in the months ahead as borrowing costs increase. That said, borrowing costs will still be low by historical standards, and raising a deposit is likely to remain the primary obstacle for many. The impact on property prices may also be tempered by the continued limited supply of properties available on the market.”
The rest of the article and the Industry Reaction can be read HERE
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