House Price Growth Reaches 15-Year High
Property sellers will be pleased to hear the value of their asset is continuing to increase, as quarterly house price growth has now reached the highest level since 2006.
According to the latest House Price Index from Halifax, property values have risen by 8.2 per cent over the 12 months leading to November, reaching a record high of £272,992.
The quarterly rate of growth was 3.4 per cent, which is the strongest level of inflation for 15 years, with house prices having risen for five months in a row.
Managing director of Halifax Russell Galley stated: “The performance of the market continues to be underpinned by a shortage of available properties, a strong labour market and keen competition amongst mortgage providers keeping rates close to historic lows.”
He noted that prices have grown by more than £20,000 in the last year, and by as much as £33,816 since the pandemic began in March 2020. Therefore, homeowners are earning £1,691 on average a month with the increase in their property’s value.
Mr Galley predicted the current rate of house price growth will not continue into next year, particularly as there is likely to be increasing pressure on household budgets and economic uncertainty as a result of the new Omicron variant of Covid-19.
Additionally, first-time buyers continue to struggle to save enough for a deposit.
Nationwide recently reported homebuyers hoping to achieve a 20 per cent deposit on an average UK home have to save 110 per cent of their income. Not only is this a record high, but also represents an increase from 102 per cent just one year ago.
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