Posts with tag: Halifax

Average UK house price rises again, Halifax House Price Index reports

Published On: June 9, 2022 at 8:58 am


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Yet another record month has been reported for UK house prices, as Halifax sees continued growth.

The latest Halifax House Price Index states that house prices in May 2022 were 10.5% higher than May 2021. However, the monthly increase has slowed to 1.0%.

The average house price has been recorded as £289,099 by Halifax.

Geoff Garrett, Director of Henry Dannell, comments on the report: “A slower rate of house price growth is always likely to follow a reduction in buyer demand and that’s certainly what we’re now seeing following a dip in mortgage approval activity at the start of the year. 

“Buyers are acting with more caution with regard to the sums they are willing to borrow and, at the same time, lenders are reducing their range of products and increasing the rates they are prepared to offer. 

“However, it remains to be seen as to whether this more tentative approach will reverse upward house price trends completely, as insufficient stock remains an issue in the current market.”

Marc von Grundherr, Director of Benham and Reeves, comments: “The fact that the annual rate of growth continues to breach double figures is quite astonishing. 

“Although a slow in the rate of monthly house price growth may indicate an air of lethargy is starting to creep in following such a consistent run of upward growth, the market remains in very fine form.

“With market stock at a scarcity, it looks as though this upward trend is unlikely to subside any time soon, despite ongoing pressure in the form of the escalating cost of living and the threat of a further interest rate increase. 

James Forrester, Managing Director of Barrows and Forrester, comments: “Any mutterings of a property market crash have been greatly exaggerated and the UK property market has remained impervious to the dark clouds that have been gathering over the wider economy in recent months. 

“While many will be struggling with the increased cost of living, the hard task of saving is nothing new for the nation’s aspirational homebuyers who continue to swamp the market while the cost of borrowing remains very favourable.”

Christina Melling, CEO of Stipendium, comments: “It’s certainly a tough time if you’re a first-time buyer. Not only has the initial financial hurdle of buying grown immensely in the last decade, but the gaps between each rung of the property ladder have also become much further apart. 

“As a result, not only is it taking until far later in life to realise our dreams of homeownership, but the climb has become much harder and longer, even once we’ve secured that first foot.”

Average UK house prices at another record high, Halifax data shows

Published On: April 8, 2022 at 9:24 am


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The latest Halifax House Price Index reports a monthly house price growth of 1.4% in March, the biggest increase in six months. 

Average house prices in the UK are now at another record high of £282,753. Read the full report here.

James Forrester, Managing Director of Barrows and Forrester, comments: “An unwavering level of market activity has continued to drive house price appreciation in 2022 and this further growth comes off the back of a pandemic property market boom that had already pushed property prices to record highs. 

“Buyer demand remains extremely high and with a lack of stock to meet this demand, there’s no end in sight when it comes to the current state of the market. Even fears around the increasing cost of living and a number of interest rate increases are yet to make a dent and so the outlook for the year ahead is a positive one where market values are concerned.”

Marc von Grundherr, Director of Benham and Reeves, comments: “A monthly look at house price growth is far too volatile a metric to judge wider market health upon. However, yet another double-digit annual increase is the real proof in the pudding and demonstrates a market that is flying high, even when compared to the strong performance posted this time last year. 

“The returning health of the London market has no doubt contributed to this. While the wider UK market was more than holding its own during much of the pandemic, this strong performance is now being bolstered by growing momentum across what is traditionally the powerhouse of UK property.  

“A return to the workplace and an influx of foreign demand are starting to stimulate property values across the capital and this will ensure that top line house price growth remains robust for the remainder of this year.”

Geoff Garrett, Director of Henry Dannell, comments: “Despite a string of interest rate increases and the inevitable impact this has had on monthly mortgage costs, the nation’s homebuyers are seemingly undeterred and continue to flood the market at mass.

“However, the general consensus is that this squeeze on mortgage affordability coupled with the increase in living costs will start to cool the current rate of house price growth as the year goes on. 

“While this may not be substantial enough to reverse the upward house price trends being seen at present, it’s almost certainly going to slow what have been some meteoric rises in recent months.”

House price growth slowed in January, Halifax data shows

Published On: February 8, 2022 at 10:27 am


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The latest Halifax House Prince Index reports that house price growth in the UK slowed to 0.3% in January. However, house prices hit a new record high of £276,759.

Colby Short, Founder and CEO of, comments: “There’s not a soul in the land that can state they’re firing fully on all cylinders during January and the UK property market is no different. However, despite what is usually the quietest time of year, the market has still inched forward to post yet another record level of house price growth.

“As the cogs start to turn once again, we can expect more of the same and while affordability remains a burning issue, high demand and a lack of stock will ensure house prices remain robust over the coming year.”

James Forrester, Managing Director of Barrows and Forrester, comments: “We’re now starting to see transactions return to pre-Covid levels but while the outlooks for the year ahead may be less manic, we’re unlikely to see any significant decline in house prices.

“This may seem surprising against a backdrop of increased living costs, interest rate increases and the ongoing issue of affordability, but there remains a huge level of motivated buyers fighting it out for what is essentially a limited level of stock.

“With these scales unlikely to tip the other way anytime soon, it certainly remains a sellers’ market and they will continue to secure a very good price for their property when bringing it to market.”

Marc von Grundherr, Director of Benham and Reeves, comments: “It may seem strange to think of London as the tortoise of the UK property market but while the rate of house price growth has been accelerating at alarming rates in the majority of UK regions, the capital’s housing market has remained far more muted.

“However, we’re now seeing something start to stir and London house prices are have climbed at double the rate seen in December alone. The returning combination of both domestic and foreign demand is helping to rejuvenate the London market and we predict that come the end of the year, the capital will be leading the house price pack once again.”

Halifax publishes final house price data for 2021, reporting record high

Published On: January 12, 2022 at 10:33 am


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Halifax’s final House Price Index for 2021 shows house prices were up 9.8% last year.

The report also states that the average price of a UK property hit a record high of £276,091 in December.

Halifax expects house price growth to slow in 2022.

Russell Galley, Managing Director of Halifax, comments within the report: “UK house prices climbed again in December for the sixth consecutive month in a row, up 1.1%. The average price for a property now stands at £276,091, an increase of more than £24,500 compared to December 2020, marking the strongest year-on-year cash rise since March 2003.”

Iain McKenzie, CEO of The Guild of Property Professionals, comments: “After an incredible year, the average UK property costs a record-breaking £275,000, with the last six months of 2021 showing unbroken growth.

“The average home rose £24,000 in a year – the largest annual cash rise since 2003, flying in the face of the economic uncertainty faced by many prospective buyers and the scaling down of government incentives.

“The housing market starts 2022 in a very strong position. Valuation requests from homeowners are a fifth higher than the year before, mortgage approvals are the highest they’ve been for years, and the pandemic appears to be on the wane. 

“Further interest rate rises are likely this year, but while demand outstrips housing, we expect that prices will continue to rise this year, albeit at a much slower pace than we saw in 2021.”

Walid Koudmani, market analyst at financial brokerage XTB, comments: “Today’s (7th January 2022) Halifax HPI data showed an increase in house price of 9.8% in 2021 and continues to show the ongoing trend the Bank of England has been striving to contain by adjusting its policy.

“While a lack of available homes for sale and historically low mortgage rates have helped drive annual house price inflation to its highest level since July 2007, today’s report indicated a slight slowdown in price growth which could bring some optimism as markets remain concerned about more aggressive measures taken by central banks to contain inflation.”

Halifax reports record high average house price for UK in October

Published On: November 8, 2021 at 9:15 am


Categories: Property News

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Halifax’s House Price Index for October reports a record high for average house prices, topping £270,000 for the first time.

The highlights of the report include:

  • Average UK property price now a record £270,027
  • Annual house price inflation up to 8.1%, up from 7.4%
  • Wales, Northern Ireland and Scotland continue to outperform the UK average

Lucy Pendleton, property expert at independent estate agents James Pendleton, comments: “Annual house price growth hasn’t been stronger since the sunset of the best Stamp Duty savings five months ago.

“However, it’s no magic trick. Despite the Bank of England’s reluctance to raise interest rates this week, everyone knows it’s coming and the only good reason to delay is if your employment situation is precarious.

“That means if someone is thinking of a move, the thought of putting it off and buying with not one but two rates rises possibly behind them by next summer is providing the motivation to just get on with it. That determination is particularly acute for first-time buyers who are more vulnerable to small rises in interest rates and often stretch their budget as far as possible.

“While some predict a cooling in demand as rates begin to rise, the opposite may be true in the short term. Even if rates reach 1% by the end of next year, it’s a long way short of the 5% that many older homeowners consider normal. A tangible rush to buy could last another 12 months at least. 

“Pair that off with low stock and a tight jobs market, and the result is a market that, despite massive rises, seems to just be hanging there in the air.

“It’s a case of so-far-so-good this autumn. The final quarter of the year was always billed as the point at which we would discover how the UK was going to fare with the crutches kicked away but, thanks to the furlough scheme, job security isn’t a threat looming over demand in the way that was once feared.”

Iain McKenzie, CEO of The Guild of Property Professionals, says: “The house price boom continued in October, and with an interest rate rise put on hold this week, it looks like the upwards trend will continue for the coming months. 

“It’s jaw-dropping to think that the average property is now worth £270,000. In November 2011, the equivalent house cost £167,757, meaning that prices have risen by more than £100,000 in ten years.

“Despite this, first-time buyers have been making the most of low borrowing rates to get on the property ladder, and are partly responsible for driving prices up.

“A desire for more space among home-owners is causing demand to outstrip housing supply, and a resilient labour market means that many people still feel confident in committing to a mortgage.

“One thing is for certain, though – this is a seller’s market. If you are considering selling your home, you could find that the time it takes to sell will be measured in hours, not days.”

Nicky Stevenson, Managing Director at national estate agent group Fine & Country, says: “It seems like nothing can stand in the way of Britain’s blistering housing market.

“Soaring inflation, increased taxes and the end of the Stamp Duty have so far failed to dampen what remains a red-hot sellers market.

“Even the threat of increased borrowing costs appears to have made little difference as the huge imbalance between supply and demand continues to fuel robust price growth right across the country.

“The frenetic pace we’ve seen this year has left many gasping for air and, while some still predict that the weakening outlook for the economy will eventually cause prices to flatline, in reality these pressures may take a long time to exert any meaningful effect.

“Even if the Bank of England begins increasing its base rate next month, this is unlikely to have any impact on the housing market until well into next year.

“More records are being broken every month and those experts predicting a dip may end up waiting a very long time before their prophecies come true.”

Halifax reports average house prices increased sharply in September

Average house prices increased 7.4% annually in September, Halifax’s latest figures show, up from 7.2% in August.

The report also states that the average UK property price is now at a record £267,587. Wales continues to outperform the UK average house price inflation, with an annual growth of 11.5%. Scotland has also continued to outperform the UK average, with a growth of 8.3%.

Industry reactions

James Forrester, Managing Director of Barrows and Forrester, comments: “Although the second phase of the Stamp Duty holiday continued to offer a notable saving for a great deal of homebuyers, we simply didn’t see the same mass panic to complete ahead of the deadline that had previously gripped the market. So, it’s unlikely that the buoyant conditions we’re still seeing are solely a result of the holiday itself.

“While there will no doubt be some form of erratic price movement on a month-to-month basis until the market settles down for good, we don’t expect the removal of this tax incentive to significantly impact the market at any level.”

Marc von Grundherr, Director of Benham and Reeves, comments: “The Stamp Duty holiday clock has now well and truly expired and those to have seen a last gasp saving would have entered the market many months ago in order to complete in time. As such, it’s fair to say that the property market is very much standing on its own two feet and so any fears of a market collapse following the Stamp Duty holiday can now be well and truly put to bed.

“Of course, such heightened levels of market activity may inevitably bring a slight cooling in the rate of house price growth, but that’s to be expected.

“The London market has been waiting patiently in the shadows watching manic levels of activity play out across the rest of the UK. The higher price of property has long seen many London homebuyers disregard the importance of the Stamp Duty holiday, particularly since the price threshold was reduced.

“However, we’ve seen a far more natural level of momentum building across the market and this looks set to snowball during the autumn and winter months. As a result, our money is on London to finish the year with the most impressive performance where house price growth is concerned.”

Colby Short, Founder and CEO of, comments: “It’s a relief to have woken up and seen the world still turning post Stamp Duty holiday having heard many spout predictions of property market Armageddon.

“While Stamp Duty may be a dubious government money grab in the eyes of most, it’s simply not enough to deter our aspirations of homeownership and the market is still in very good health.

“The cost of borrowing remains favourable and this will continue to fuel demand while a significant imbalance between this demand and the stock available will ensure house price growth remains buoyant.”

Walid Koudmani, market analyst at financial brokerage XTB, comments: “Data from Halifax showed UK house prices grew 7.4% annually, whilst a monthly growth of 1.7% was the strongest pace since 2007. This cuts a three-month downward trend in annual price growth.

“It’s clear one key driver of the price growth continues to be hunger for houses as buyers demand more space as firms have moved to maintain flexible working between the office and home. This is why house price growth exceeds flat price growth by 8.9% to 6.1%. Yet also the lack of supply is also a key driver here behind the price growth, with many buyers bringing completions early to take advantage of the Stamp Duty discount which has now expired.

“It’s likely that supply will continue to be short in the very near term and this may likely keep house prices elevated in the months ahead. The medium-term picture remains much more uncertain however as its likely prospective buyers may start to be priced out due to looming interest rate rises and inflationary pressures.”

Nicky Stevenson, Managing Director at national estate agent group Fine & Country, says: “A reality check has been forthcoming — it’s just not the one anyone was expecting. 

“House price growth has accelerated just as the market’s crutches have been taken away. This is the exact opposite of what logic dictated should have happened in September and tells you the rally isn’t over yet. 

“The housing market has hurtled into what had been widely billed as a period of adjustment but its reaction has defied gravity yet again.

“All major government support, in the form of the furlough scheme and Stamp Duty giveaway, had effectively vanished in the minds of these buyers. However, fears of an immediate and animated slowdown have come to nothing. 

“This suggests the pandemic has done more than deliver a head-turning run of record highs. Changes in property shopping habits could well have some of the permanence that has only been an article of faith so far, even once you factor in the persistent lack of stock that continues to put a floor under prices.”

Lucy Pendleton, property expert at independent estate agents James Pendleton, comments: “The market has delivered a record high just as the stool was being kicked away. It also did it in some style. The last time we saw monthly price growth like this, Tony Blair was Prime Minister.

“For all the talk of this rally slowing, it’s still right up there with some of the most bullish markets on record.

“However, London continues to underperform. Average prices are so much higher in the capital that a period out of the limelight isn’t necessarily a problem on paper but investors are keeping a keen eye on London’s post-pandemic recovery. Ultimately, they will go where the demand is but it’s too early to tell whether an influx of buyers and renters will put the capital back in pole position next year in relative terms. 

“The reinstatement of an office into people’s work routine is still a work in progress but, judging by the number of people we speak to who have done a screeching u-turn on plans to move to the country, rumours of a weakening of demand for London property seem to have been greatly overstated. 

“Buyers with the flexibility to drop everything and go on a viewing are becoming rarer by the day. People are living their new normal — it’s just not as new as we all thought it was going to be.

“The economic pain expected over the next six months could hasten the capital’s re-emergence as the country’s best performing region but that’s a silver lining to a dark cloud that could sorely affect the wider market.

“The uncertainty of a world not propped up by Stamp Duty tax breaks and furlough handouts is likely to most severely affect the regions where growth has truly been on fire.”

Karthik Srivats, co-founder of mortgage lender Ahauz, comments: “It’s been a frenetic time in the housing market and this data shows things have not got any easier for first-time buyers.

“The tail end of the Stamp Duty holiday has seen a bump in house prices after a period in which the pace of annual growth appeared to be slowing slightly.

“Growth in prices continues to outstrip wages and raising a deposit the old-fashioned way through patient savings remains an unrealistic dream for most. With the cost of living going up and an upcoming increase in taxes, first time buyers across the country are craving for any kind of support to get on the property ladder.

“One piece of good news is that first time buyers now have sole access to Stamp Duty relief on purchases up to £300,000 which may give them a slight edge going forward. 

“Looking ahead, while many are still forecasting more modest gains later in the year, it really is a case of, believe it when you see it.

“Rock bottom interest rates and a continued demand for bigger homes with more outdoor space may well support buyer activity for some time to come.”