Looks like it’s not just London where house prices are soaring – it’s all across the UK.
House values reached an all-time high in November, jumping by 7.7% over the same period the previous year and hitting its highest annual level for the past six years.
The figures come from mortgage lender Halifax, which found that the price of a typical house in the UK was £174,910 in November – £13,577 more than in 2012 – suggesting that prices are seeing an average uptick of £37 a day. By comparison, average salary growth in the country is just 0.8% a year, meaning that house values are exhibiting ten times faster improvement than earnings.
Compared to October, house prices rose by 1.1% in November, scoring their tenth monthly jump in a row.
Halifax put the increase in home values down to the more solid market demand coupled with the humble growth in supply. Other factors driving the higher activity are low interest rates, the uptick in consumer confidence, and the launch of the Funding For Lending and Help to Buy scheme, The Telegraph said.
The release of the mortgage lender’s report coincides with the publication of the Whitehall’s official forecast on house values, which predicts a rise in prices of more than 20% by 2018. In London boroughs, prices have already exceeded their peak levels seen in 2007, stoking fears that the market is overheating, at least in the capital and southeast England.
Global Insight economist Howard Archer predicts that house prices could see more pronounced growth in the next couple of months, particularly if the Help to Buy scheme gives further boost to housing market activity and buyer interest, which are already gaining strong momentum.