Great news from Halifax – their latest house price index report shows that home values in the three months to January maintained the uptrend observed recently, going up 1.9% over August-October 2013.
The improvement remains within the range of 1.8% to 2.1% that has been registered over the last eight months, the mortgage lender said.
Year-on-year, residential property values advanced by 7.3% between November 2013 and January 2014, only slightly slower than the 7.5% increase recorded in December. In monthly terms, however, prices gained 1.1% in January, following a less pronounced rise of 0.5% the previous month.
Activity on the housing property market also remained in positive territory, with Halifax counting over one million transactions for the first time since 2007. The higher demand for residential property correlated with a spike in mortgage approvals for house purchases, which improved by 9% in the final quarter of 2013, and by 30% than the same period in 2012.
Halifax’s housing economist Martin Ellis commented that the uptrend in house prices is mainly fuelled by the growing demand for property, coupled with the insufficient inventory supply, which is slow to respond to the more favourable conditions on the residential market. The higher demand has been driven by the low interest rates and consumers’ growing confidence as a result of declining unemployment and the state of the country’s improved economy. Other factors propping up demand include schemes such as Help to Buy.
Have you witnessed a growth in confidence recently as a result of these factors?