Average UK house prices hit a record high of Â£ 270,000 as prices defied expectations of a slowdown after the stamp duty holiday ended.
The Halifax home price index rose 8.1 per cent in October from the same month last year, rising 7.4 per cent the previous month and marking the fastest pace since June.
The increase brought the average house price to over Â£ 270,000 for the first time on record.
The Halifax Index comes two days after the Nationwide Report which found average house prices topped Â£ 250,000 in October for the first time. Both indices are based on the mortgages they approve with differences resulting from their clients’ baskets.
â€œOne of the main drivers of housing market activity over the past 18 months has been the race for space, with buyers looking for larger properties, often further away from urban centers,â€ Russell said. Galley, Managing Director of Halifax.
He added that first-time buyers, supported by parents’ deposits, improved access to mortgages and low borrowing costs, have also helped boost price growth.
The UK’s economic performance, with a strong labor market and a record number of vacancies, provides a “favorable backdrop for housing market activity,” Galley said.
London remained by far the worst performing area in the UK with annual inflation of just 0.8%, the smallest year-on-year price increase since February 2020. The capital’s underperformance largely reflects a moderate demand, as the increase in homework has meant that many have been able to move to less crowded places.
In contrast, Wales was the best performing nation or region with annual house price inflation of 12.9 percent.
However, Galley expects housing demand to “cool down” in the coming months as borrowing costs rise following the expected Bank of England rate hike in December.