House prices rose last month at their fastest rate since February, despite confidence in the market at its lowest level in five years. According to the latest Halifax House Price Index, annual house prices went up 4.5% in the three months to October – up from 4% in September. This is the third month in […]
House prices rose last month at their fastest rate since February, despite confidence in the market at its lowest level in five years.
According to the latest Halifax House Price Index, annual house prices went up 4.5% in the three months to October – up from 4% in September.
This is the third month in a row that house prices have gone up, suggesting the market has recovered following the Brexit vote.
The average price of £225,826 is the highest on record and 2.8% higher than in January.
Halifax said that low mortgage rates and shortage of properties on the market, combined with high employment, would continue to support prices.
It said that last week’s base rate rise by the Bank of England was unlikely to affect the market.
Russell Galley, managing director of Halifax Community Bank, said: “Increasing pressure on household finances and continuing affordability concerns are some of the factors likely to dampen buyer demand.
“That said, we do not anticipate the base rate rise will be a barrier to buying a house.”
Last week the Bank of England raised interest rates for the first time in more than decade to 0.50%.
The move will affect around five million borrowers who will now face higher mortgage payments.
Recent research from Halifax revealed that confidence in the UK housing market has fallen to its lowest level in five years, with the he ability to raise a deposit seen as the biggest problem to getting on the housing ladder.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With demand for housing outstripping supply, property prices continue to be supported with the annual rate of growth continuing to rise.
“It helps that mortgage rates remain low, and even though the Bank of England raised base rate last week, there are no signs of them shooting up anytime soon.
“While psychologically the first base rate rise in 10 years may affect people’s decision-making when it comes to moving house, signs are that any further increases will be modest and slow, so unlikely to put the brakes on the market.”
