Have you noticed a rise in confidence recently with regards to the property market? The improving UK economy seems to have given the country’s property market yet another strong boost in the second quarter, fuelling demand for homes and bringing an increase in prices, Halifax’s latest House Price Index shows.
The mortgage unit of Lloyds Banking Group has estimated that in the three months to June, property values added 2.3% in quarterly terms and 8.8% on an annual basis, reaching an average of £183,462. The annual growth rate of 8.8% was the biggest rise since 2007, Bloomberg commented.
The lender said that the quarterly rises in property prices have hovered around the 2%-2.3% range since June 2013.
In June alone, home prices slipped 0.6% from their May level, marking their fourth monthly decline in a row. Still, this monthly trend of declines could be temporary and the quarterly change should be what buyers and sellers consider as the more reliable indicator, Halifax noted.
Overall, sales of homes declined by 3% in May, falling below 100,000 for the first time in half a year – although deals were still 15% higher than the same month the previous year. The research also revealed that May was the sixth consecutive month to see a drop in new buyer enquires. If the trend is preserved, it could affect further growth in demand, Halifax said.
Stephen Noakes, mortgages director at Halifax, commented that housing demand remains supported by the country’s economic revival that is gathering pace, despite the relatively lacklustre growth in real earnings.
Rising employment levels and consumer confidence naturally boost the property market. Have you witnessed this spike?