UK house prices are rising at the fastest monthly rate since 2007


UK house prices jumped in September to their fastest monthly rate since February 2007 as buyers continued to “run for space,” according to Halifax.

Data from the bank showed the average selling price of a house rose by £ 4,400 to a new record high of £ 267,587.

Property values ​​rose 1.7 percent during the month and 7.4 percent during the year through September. The price of single-family homes rose 8.8%, or £ 41,000, over the year.

Halifax said a stamp duty holiday that began to decline in July before ending in October was one of many factors that pushed prices up.

The tax cut has drawn criticism for fueling a housing boom that has made homes less affordable.

Low borrowing costs and the desire for larger properties also drove average selling prices up, Halifax said.

The bank expects prices to be supported next year by a continued lack of supply. Real estate agents have reported a further reduction in the supply of homes for sale since the stamp duty holiday began to decline.

“The ‘space race’ as people changed their preferences and lifestyle choices has undoubtedly had a major impact,” said Russell Galley, CEO of Halifax.

“If you look at the price changes over the past year, apartment prices have only increased by 6.1%, compared to 8.9% for semi-detached properties and 8.8% for single-family homes. .

“This translates to cash increases for individual properties of almost £ 41,000, compared to just £ 6,640 for apartments.

“Amid mounting cost of living pressures and impending tax hikes, demand could be expected to slow in the coming months, with some industry metrics already pointing to lower levels buyer activity.

“Nonetheless, low borrowing costs and improved labor market prospects for those who are already employed should continue to provide support.”

Martin Beck, senior economic adviser to the EY Item Club, was more cautious about the price outlook.

“The headwinds to continued growth in house prices are increasing,” he said. “The purchasing power of households is facing both the rise in the cost of living and the increase in personal taxation due next April.

“The weaker income outlook means that housing affordability, on measures such as price-to-income ratio, will look increasingly strained.”

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