New EICR to cover any changes made by outgoing tenant?10:00 AM, 4th May 2021
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The Halifax House Price index has just been released for November and it is showing strong growth both month on month at + 1.2% and annually at + 7.6% (the largest growth since June 2016). The average house price in the UK now stands at £253,243.
In the latest quarter (September to November) house prices were 3.8% higher than in the preceding three months.
HMRC Monthly property transactions data shows a sixth consecutive monthly rise in UK home sales in October. UK seasonally adjusted residential transactions in October 2020 were 105,630 up by 9.8% from September. The latest quarterly transactions (August-October2020) were approximately 55.7% higher than the preceding three months (May-July2020). Year-on-year, transactions were 7.3% higher than October 2019 (13.7% higher on a non seasonally adjusted basis). (Source: HMRC, seasonally-adjusted f figures)
Mortgage approvals rose in October to the highest level seen in 13 years. The latest Bank of England figures show the number of mortgages approved to finance house purchases rose by6% to 97,532. Year-on-year, the October figure was 51% above October 2019. Source: Bank of England, seasonally-adjusted figures)
Results from the latest RICS Residential Market Survey show another strong month for housing market activity. New buyer enquiries displayed a net balance of +46% (previously +52%in September), new instructions +32% (+38%previously)and agreed sales +41% (+54% previously). (Source: Royal Institution of Chartered Surveyors’ (RICS) monthly report)
Russell Galley, Managing Director, Halifax, said: “House prices rose by more than 1% in November, adding almost £3,000 to the cost of a typical UK home. At just over £253,000, the average property price has risen by more than £15,000 since June. In percentage terms that equates to 6.5% the strongest five-monthly gain since 2004.
“With mortgage approvals at a 13-year high, the current market continues to be shaped by a desire for more space, the move from urban to rural locations and indications of a trend for more home working in the future. And while industry data shows agreed sales and new instructions to sell fell to their lowest in the past five months, both remain at historically high levels and well above seasonal norms.
“As the March deadline for the stamp duty holiday approaches, properties sold to home-movers recorded a much higher rate of annual house price inflation (+7.9%)than first-time buyers (+5.8%). It is interesting to note that the stamp duty saving of £2,500 on a home costing £250,000 is now far outweighed by the average increase in property prices since July.
“The housing market has been much more resilient than many predicted at the outset of the pandemic, and indeed many households remain confident about further price growth next year. However, the economic environment continues to look challenging. With unemployment predicted to peak around the middle of next year, and the UK’s economy not expected to fully recover the ground lost over 2020 for a number of years, a slowdown in housing market activity is likely over the next 12 months.”
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