Halifax data indicates UK house prices are growing annually by 9.7% which they say “improving economic conditions” are behind the acceleration in values.
The latest house price index has revealed the annual rate of growth has increased from 8.6% last month to 9.7%. During October, house prices increased by 1.1%, following the decline of 0.9%.
Halifax believe that the average price of a flat or house across the country is now around £205,240.
Halifax housing economist Martin Ellis explains “House prices in the three months to October were 2.8% higher than in the previous three months. This was slightly above the average of 2.5% on this measure over the first nine months of the year”.
He continues “Improving economic conditions and household finances, together with sustained low mortgage rates, have boosted housing demand during 2015. Strengthening demand is filtering through in to higher sales levels although the ongoing shortage of supply is acting as a significant constraint on activity. The imbalance between supply and demand is likely to persist over the coming months, maintaining upward pressure on house prices.”
Generally the data shows the scale of interest rate rises will dictate the pace, distribution and sustainability of house price growth, but it expects that average UK prices will rise by 17% at the end of 2020 with immense regional variations.