UK house prices rise, but demand will cool, Halifax said.
House prices are rising for the fourth month in a row, but Halifax says the market will enter a cooling stage.
UK house prices rose for the fourth month in a row in October, rising above an average of £ 270,000 for the first time in the Halifax measure, but the mortgage lender predicted a market cooling in the coming months if the Bank of England increases interest rates.
Halifax said the median cost of a home increased 0.9% compared to the previous month, after rising 1.7% in September, adding more than £ 2,500 to the value of a typical British home.
He pointed to several market drivers, including first-time buyers backed by help with their parents’ deposits, better access to mortgage deals, and lower borrowing costs.
“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 away from urban centres,” said Russell Galley, Managing Director of Halifax. “Combined with temporary measures like reducing the stamp duty, this has helped drive the median property price to an all-time high.”
House prices growth remains strong despite the phasing out of the government stamp tax in late September. The annual rate of house price inflation (8.1% compared to the same month last year) was the strongest since June.
Wales continues to experience the strongest house price inflation of any UK nation or region, rising 12.9% in October to an average of £ 198,880. The median property price in Scotland increased 8.6% year-on-year to £ 190,000.
In England, the North West was once again the top-performing region, outperforming the South West, with an increase of 10.4%, the highest increase in four months, and an average price of £ 205,881.
London continues to show the weakest growth: house prices rose just 0.8%, a drop from 1% in September, the lowest level seen since February 2020.
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