UK house prices up six per cent

House prices in the UK are on the rise again, according to new figures from Halifax.

The average price of a home in Britain between September and November was £218,002 – a whopping six per cent higher than in the same three months a year earlier.

This marked the first increase in the ann…

House prices in the UK are on the rise again, according to new figures from Halifax.

The average price of a home in Britain between September and November was £218,002 – a whopping six per cent higher than in the same three months a year earlier.

This marked the first increase in the annual growth rate for eight months, explained Martin Ellis, Halifax’s housing economist.

“Despite November’s pick-up, the annual rate has been on a steady downward trend in recent months since reaching a peak of ten per cent in March,” he commented.

A sustained period of house price growth in excess of earnings rises had resulted in heightened affordability pressures, dampening housing demand and contributing to the slowdown in house price inflation, Mr Ellis added.

“Very low mortgage rates and an ongoing, and acute, shortage of properties available for sale should help support price levels, although annual house price growth may slow over the coming months,” he went on to say.

The rise in average UK house prices to £218,002 represented a 0.8 per cent increase on the previous quarter too.

Confidence down

Meanwhile, confidence in the UK housing market has dropped to its lowest point in three years, says Halifax.

Its latest Housing Market Confidence Tracker, which tracks consumer feelings over whether house prices will be higher or lower in a year’s time, shows a decline of 14 points from March 2016 (+56) to a net +42 in the latest survey.

Despite this, a clear majority (57 per cent) expect the average UK price to be higher in a year’s time; more than three times the proportion that expects a lower average price (15 per cent).

The number of homes being sold has steadied in recent months, but fewer are being sold than this time 12 months ago, with an eight per cent drop in the three months between August and October, compared to the same period in 2015.

Mortgage approvals have also stabilised, with volume growing six per cent between September and October, which indicates more homes will change hands over the coming months.

By Amy White

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