The typical UK property worth has risen to an all-time excessive of £270,000 as costs defied expectations of a slowdown after the tip of the stamp obligation vacation.
The Halifax home worth index rose 8.1 per cent in October in contrast with the identical month final yr, accelerating from 7.4 per cent within the earlier month and marking the quickest tempo since June.
The rise took the common property worth to above £270,000 for the primary time on report.
The Halifax index comes two days after the Nationwide report that discovered the common home worth topped £250k in October for the primary time. Each indices are primarily based on mortgages they approve with variations ensuing from the basket of their prospects.
“One of many key drivers of exercise within the housing market over the previous 18 months has been the race for area, with patrons looking for bigger properties, typically farther from city centres,” stated Russell Galley, managing director at Halifax.
He added that first-time patrons, supported by parental deposits, improved mortgage entry and low borrowing prices, have additionally helped to drive worth development.
The UK financial efficiency, with a robust labour market and a report variety of job vacancies, gives a “benign backdrop to housing market exercise”, stated Galley.
London remained by far the weakest performing space of the UK with annual inflation of simply 0.8 per cent, the bottom year-on-year rise in costs seen since February 2020. The underperformance of the capital largely displays subdued demand as elevated homeworking meant that many have been in a position to transfer to much less crowded locations.
In distinction, Wales was the strongest performing nation or area with annual home worth inflation of 12.9 per cent.
Nonetheless, Galley expects home demand to “cool” within the months forward as borrowing prices enhance following the anticipated enhance within the Financial institution of England coverage fee in December.