Average UK house price surpasses £270,000
According to Halifax’s latest house price index, this is the first time average house prices have exceeded £270,000 in its reporting and it is the fourth consecutive month of price rises this year.
Average house prices in the UK are now pegged at £270,027, which is up 0.9% month-on-month and up 8.1% year-on-year. The report said this was the highest annual increase since June.
The results mirror Nationwide’s house price index, which came out earlier this week and showed that house prices had breached £250,00 for the first time in its reporting.
Halifax’s managing director Russell Galley said the key drivers of growth over the past 18 months had been the race for space as buyers sought bigger properties away from the city, along with measures like the stamp duty holiday.
He added that since April last year, average property prices had grown by around £31,516, an increase of 13.2%.
Wales reported the strongest growth with an annual house price change of 12.9%, bringing average house prices to £198,880.
This was followed by Northern Ireland with 11.3% annual change, which brought average house prices to £169,308. North West’s annual change was pegged at 10.4%, with average house prices coming to £205,881 and was England’s top performing region.
Scotland also reported 8.6% annual house price change, with average house prices coming to £190,023.
London was the weakest performing region with annual inflation of 0.8%, compared to an increase of 1% in September. This is the lowest year-on-year rise since February last year.
Galley said: “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.”
First-time buyer house price growth hits five-month high
The report also noted that first-time buyer annual house price inflation came to 9.2%, which was a five-month high. This was attributed to parental deposits, improved mortgage access and low borrowing costs.
Mark Harris, chief executive of SPF Private Clients, said: “The return of first-time buyers to the market, helped by high loan to value mortgages and the help of the Bank of Mum and Dad is welcome, as they are the lifeblood of the market.
“However, with first-time buyer annual price inflation higher than that of movers, one wonders how long they can keep up with rising prices.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added that first-time buyers must have “breathed a sigh of relief” yesterday following the Bank of England’s decision to hold the base rate at 0.1%.
He said: “This is only likely to prove to be a temporary reprieve as a rate rise seems inevitable. Looking forward, we expect not much change with more demand for houses than flats, masking larger differences in percentage changes.”