Annual house prices increase 4.5% and continue affordability concernsMake Text Bigger
The Halifax Price Index figures for the last quarter August to October show the price of an average house is now a record high of £225,826.
House prices in the last quarter were 4.5% higher than in the same three months last year. The annual growth rate in October is higher than in September (4.0%) and at its highest rate since February.
House prices in the last three months (August-October) were 2.3% higher than in the previous quarter. This is the fastest price growth, on this measure, since January.
Russell Galley, Managing Director, Halifax bank said: “The annual rate of growth has continued to rise for the third month in succession, rising from 4.0% in September to 4.5% in October. The average house price is now £225,826 exceeding last month’s previous high. House prices in the three months to October were 2.3% higher than in the previous quarter, the fastest quarterly increase since January.
“The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, continues to support house prices and is likely to do so over the coming months. 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.”
UK house prices historical data all houses chart below:
Declining stock of homes for sale:
The Halifax House Price Index is the UK’s longest running monthly house price series with data covering the whole country going back to January 1983. From this data, a “standardised” house price is calculated and property price movements on a like-for-like basis (including seasonal adjustments) are analysed over time. The annual change is calculated as an average for the latest three months compared with the same period a year earlier. These figures provide a better picture of the underlying trend compared to a monthly year-on-year number as they smooth out any short-term fluctuations.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.