Halifax: UK house price growth hits 15-year high in November

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NS

With the residential property market showing no signs of slowing down, house price growth has hit a 15-year high, according to new data.

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Halifax said home prices in the UK rose 1% in November to an average of £272,992. It’s far higher in London, at £521,129.

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Home prices rose 3.4% on a quarterly basis, the strongest reading from the measure since 2006.

Prices increased by 8.2 per cent year-on-year. The pace was much slower in London, where the annual increase was only 1.1%.

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Russell Galley, Managing Director of Halifax, said: “Distinctive Values [are] There has been an increase of around £13,000 since June and over £20,000 since this time over the previous year. Since the start of the pandemic in March 2020, and the UK entering lockdown for the first time, house prices have increased by £33,816, the equivalent of £1,691 per month.

“Market performance is being undermined by a lack of available properties, a strong labor market, and intense competition among mortgage providers keeping rates close to historic lows. There is a lot of activity driving even those taking their first steps on the property ladder. Playing an important role, annual home price inflation for first time buyers is 9.1%, while for home movers it is 8.8%.

Galli said there were signs that the ‘space race’ seen during the pandemic was reversing as people headed back to city centers to return to day-to-day office work. Prices of flats grew at a compound annual rate of 10.8%, surpassing 6.6% growth for detached properties.

Halifax’s data comes days after reporting similarly strong momentum nationwide, with its data suggesting a 10% annual increase in home prices over the past month.

Prices have risen despite the end of the stamp duty holiday at the end of September, which many observers thought would lead to a moderation in activity and prices.

Guy Gittins, CEO of estate agent Chestertons, said: “We typically see a seasonal market slowdown at the end of the year, but this November, we saw a comparatively active market instead. Our offices saw a drop in sales compared to October. Registered a growth of 16%, which proves that buyer appetite remains strong.

Jan Crosby, Head of Infrastructure, Building and Construction at KPMG UK, said: “It appears that home price inflation does not ease at least until supply chain issues ease up and the housing stock eventually starts to catch up with demand. .

“This is a strong market in which sellers continue to be alert. Available assets are selling out very quickly, but a disparity between rising prices and purchasing power remains, with inflation rising in wages.

Persistent home price inflation puts more pressure on the Bank of England to raise interest rates, making mortgage lending more expensive and theoretically pouring cold water on the red-hot market. Banks have already pulled their best mortgage deals from the market in anticipation of a rate hike.

Galli said: “Looking ahead, there has been more uncertainty than ever now, with interest rates expected to rise against further increases in inflation.

“Economic confidence may also be affected by the emergence of the new Omicron virus variant, although given insufficient data at this stage, it is still too early to speculate on any long-term impact, not to mention the resilience of the housing market.” Already has. Shown in challenging conditions.”

He continued: “We would not expect to maintain the current level of home price growth next year, as the home price-income ratio is already historically high, and the household budget will only come under more pressure in the coming months.” is likely to.”

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