UK House Prices Are Still Rising

As we move to the end of the year, it is natural for people to take stock of what has happened, and try to predict what will come next in the housing market. At Prestige & Village, we are always on hand to assist you as best we can, so if you need any support, we are here for you.

Halifax figures indicate consistency and growth

Russell Galley, Managing Director, Halifax, said: “UK house prices rose again in November, with the value of the average property increasing by another 1%, or £2,808, tipping the annual rate of inflation up to 8.2%. This is the fifth straight month that average house prices have risen, with typical values up by almost £13,000 since Jun e, and more than £20,000 since this time last year. On a rolling quarterly basis, the uptick in house prices was 3.4%, the strongest gain since the end of 2006, bringing the new average property price up to a record high of £272,992. Since the onset of the pandemic in March 2020, and the UK first entering lockdown, house prices have risen by £33,816, which equates to £1,691 per month.”

Russell Galley concluded by saying; “Leaving aside the direct impact of a possible resurgence in the pandemic, for now, we would not expect the current level of house price growth to be sustained next year given that house price to income ratios are already historically high, and household budgets are only likely to come under greater pressure in the coming months.”

Do you need help in the housing market?

Anyone who is looking for support or guidance in the property market should get in touch with Prestige & Village, and we will be more than happy to assist you.

Anna Clare Harper, chief executive of property consultancy SPI Capital, says: “Halifax says house prices rose to a 15-year high this month at £272,992, despite the recent end of the temporary stamp duty holiday. This strong growth may seem surprising since transactions also fell to a nine-year low in October 2021. The latest data shows that house-price growth is not just about how many people want to buy and sell, but how much they want to do so, and how able they are to do it. The temporary stamp duty reduction designed to combat the impacts of Covid on the housing market acted as a catalyst, but this was not the cause of recent house-price growth. Many people still want and need to buy a home. We also have a severe shortage of quality housing, and stiff competition among lenders, meaning finance is cheap and widely available. As a result, with so many people wanting to, and able to afford to move home, demand is greater than supply and house prices continue to rise.”

Anna Clare Harper concluded by saying; “Going forward, it is likely that the pace of growth will slow, in particular through the colder winter months which make it harder for many potential buyers logistically, with fewer daylight hours for viewings. However, growth is likely to continue while interest rates remain low, since the cost of holding on to a property is cheap, and competition amongst lenders means low cost, fixed-rate mortgages are widely available. The biggest problem the housing market faces is the shortage of available stock, which means that prices are likely to remain strong. This issue is unlikely to change anytime soon due to higher costs of materials and labour, a backlog of planning applications and a growing burden of rules and regulations for property developers to contend with.”

There is no denying harsh weather conditions will impact physical viewings, but this is no reason to not enter the housing market. If you are keen to connect with buyers, contact Prestige & Village, and we will be more than happy to assist you.

At Prestige & Village, we care about our community, and supporting others. We aim to provide you with as much help and assistance as we can. If you have any property or housing questions, please feel free to contact us today.