The latest Halifax House Price Index was released today providing the latest indicator of UK property price growth and how the market is performing.
The index shows that despite current market conditions, UK house prices have continued their positive growth trend for a third consecutive month, with the annual rate of increase up 4.5%. Prices were also up 0.3% between September and October and 2.3% in the quarter, putting the new average UK house price at £225,826.
Despite recording a slow in the number of mortgage approvals, sales instructions and buyer enquiries in September, the UK market has continued to defy the uncertainty that has surrounded it and the wider economy since the Brexit vote, and should continue to do so over the coming months according to Russell Galley – Managing Director of Halifax Community Bank.
The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, continues to support house prices and is likely to do so over the coming months.Russell Galley
Although the Bank of England increased interest rates from 0.25% to 0.50% last week, it is widely believed that the market will continue to see positive signs of growth and buyers will remain undeterred, as the cost of borrowing money remains low and provides little barrier to getting on the ladder. This continued level of buyer demand, coupled with the imbalance in housing stock available, particularly affordable housing, should also continue to stimulate price growth as eMoov’s own Russell, Russell Quirk, explains.
Positive signs with the third month of consecutive price growth seen across a resilient UK market providing a strong outlook heading towards the end of the year, with a shortage of new builds and affordable property continuing to help stimulate price growth.
Although the increase in interest rates may stretch some who have borrowed beyond their means and are now treading on thin ice, it is unlikely to impact the wider market. The cost of borrowing money remains at an ultra-low level and this, coupled with persistent buyer demand, should see the market continue to gain momentum.Russell Quirk