House prices in the UK have been rising at a rapid pace since 2016.
Halifax data shows home prices rose 7.5% in October. The average property price is currently £250,457.
On a month-to-month basis, prices rose by just 0.3% from September to October.
Despite this year’s growth, Halifax managing director Russell Galley warned the housing market will start to slow.
“The average house price in the UK is now above £250,000 (£250,547) for the first time in history, as annual house price inflation rose to 7.5% in October, the highest rate since mid-2016.” Underlying the market’s recent pace of price growth is a 5.3% increase over the past four months, the highest growth since 2006. However, month-on-month price growth slowed significantly, falling to just 0.3% compared to 1.5% in September. ” Guerra said.
“Overall, we see a broad continuation of recent trends, with the market still primarily driven by relocation demand for larger homes. Since March, apartment prices have increased by 2.0%. In contrast, the price of a typical detached property has increased by 6.0%. In cash terms, this equates to an increase of £27,371 for a detached house and £2,883 for a flat.
“This level of price inflation is being supported by extraordinarily high levels of demand, with the latest industry figures showing mortgage approvals for homebuyers are at their highest level since 2007, with the impact of the spring Transaction levels continue to rise due to pent-up demand.”/Summer lockdown and Chancellor’s exemption from stamp duty on properties up to £500,000.
“While there is no doubt that government support measures have helped to slow the expected downturn in the housing market, it will not last forever and the UK macroeconomic situation remains very much in place as we head into autumn and winter. Uncertain. New lockdowns will be more restrictive than earlier this year. is set to ease, confirming that the country’s fight against COVID-19 is far from over.There are a number of clear headwinds in the housing market heading into 2021. We expect further downward pressure on prices.”
