Halifax: house prices hit record high

UK house prices rose 1.7% in September, equivalent to a £ 4,400 increase in the value of an average property, according to the latest Halifax House Price Index.

This means UK house prices are now at an all-time high of £ 267,500.

This month-over-month increase is the largest increase since February 2007 and brings house price inflation to 7.4%.

underground tube

London third for availability of top notch properties

It also reversed the recent three-month downward trend in annual growth, which peaked at an annual rate of 9.6% in May.

Wales continued to experience the highest house price inflation of any region or nation in the UK, growing 11.5% annually in September (average house price of £ 194,286).

Scotland also continues to outperform the UK national average, growing 8.3% (average house price of £ 188,525).

In both countries, the equivalent stamp duty holidays ended at an earlier date.

The South West remained the best performing region in England, with annual house price growth of 9.7% (average house price of £ 276,226).

The North West saw the second largest increase, with house prices up 9% year-on-year (average house price of £ 201,927), slightly ahead of Yorkshire and Humber at 8.9% (price housing average of £ 186,815).

The worst performing regions in terms of annual house price inflation are all in the south and east of England, although these are also the regions with the highest average house prices. .

The East of England has seen an annual growth of 7.2% (average house price of £ 310,664) while in the South East it is 7% (average house price of 360,795 £).

Greater London remains the outlier, growing only 1% annually (average house price of £ 510,515), and was again the only region or nation to record a decline in house prices in the during the last rolling three-month period (0.1%).

Russell Galley, Managing Director of Halifax, said: “While the end of the stamp duty holidays in England – and homebuyers’ desire to close deals quickly – may have played a part in these numbers, it is important to remember that most mortgages were accepted. in September would not have been completed before the expiration of the tax break.

“This shows that several factors played an important role in the evolution of house prices during the pandemic.

“The ‘space race’ as people changed their preferences and lifestyle choices has undoubtedly had a major impact.

“If we consider the evolution of prices over the last year, apartment prices have only increased by 6.1%, against 8.9% for semi-detached houses and 8.8% for houses. individual.

“This translates to cash increases for individual properties of almost £ 41,000, compared to just £ 6,640 for apartments.

“Amid mounting cost of living pressures and impending tax hikes, demand is expected to slow in the coming months, with some industry metrics already indicating lower levels of buyer activity.

“Nonetheless, low borrowing costs and improved labor market prospects for those who are already employed should continue to provide support.

“Perhaps the most important factor in determining the future of house prices remains the limited supply of available properties.

“With realtors reporting a further reduction in the number of homes for sale, this should support average prices – but not the recent rate of price growth – next year.”

Mike Scott, Chief Analyst at Yopa, added: “The Halifax Home Price Index for September shows that there has been a sharp monthly increase in home prices as we reach the final end of the holiday season. stamp duty, with average prices up 1.7% for the month and the annual rate of increase standing at 7.4%.

“Mortgage approvals included in September’s figure are largely for purchases that will end in the next few months and will not benefit from any tax savings, so this is already a figure after the holidays.” .

“So this is further proof that the withdrawal of tax savings will have little effect on the overheated housing market, which is still driven by a severe shortage of homes for sale, good availability of mortgages at low rates. record interest, high wages. growth, the lifestyle changes brought on by the pandemic, and the unintended savings accumulated by many during the closures.

“Yopa therefore expects the current strong price growth rate to continue at least until the first half of 2022 as we continue to recover from the pandemic and return to a new normal.”

Jeremy Leaf, North London real estate agent and former residential chairman of RICS, said: of the stamp duty holiday.

“Nonetheless, we see that activity has lost some momentum, but there is still a lot of life left, supported by record interest rates and supply, although rising, is not doing so quickly enough.

“The market also appears to be ignoring rising inflation and the end of holidays, as well as heightened economic concerns.”

In August, the average cost of a home hit £ 262,954, up 0.7% from July and the highest figure on record.

Source link

Previous Detroit real estate scams on the rise
Next Biden aims to make it easier to buy a home. But keeping Wall Street out could be a daunting task.

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *