House prices hit new record high of nearly £300,000 says Halifax, as values rise at fastest pace since January
House prices have hit a new record high after the biggest monthly rise since January, according to the latest figures from Halifax.
It found that the value of the average house in England rose by £1,647 in October, equivalent to 0.6 per cent.
It is stated that this is the fourth time that the average price has increased in the last five months.
This means a typical property is now worth £299,862, according to the lender; This is the highest figure in history.
Annual average property prices increased by 1.9 percent, a jump from the 1.3 percent recorded last month.
Mortgage loan approvals are at their highest level this year, according to Halifax. Amanda Bryden, head of mortgages at the bank, says this shows people still have a strong appetite to buy and move homes.
Still rising: This is the fourth time the average price has increased in the last five months, according to Halifax
He says: ‘Despite some uncertainty in the market, demand from buyers performed well in the autumn; ‘The number of new mortgages recently approved has reached its highest level so far this year.’
‘The market has proven resilient in recent months; many buyers are opting for smaller deposits and longer terms to help make the numbers work.
‘With house prices rising more slowly than incomes for almost three years now, we expect the trend of gradual increases in affordability to continue.’
Mortgage interest rates are falling
Buyers are likely encouraged by the mortgage deals currently available.
Mortgage rates There has been a decline in recent weeks due to the predictions of an interest rate cut in December.
HSBC, Barclays, NatWest, Halifax, Santander and Nationwide Building Society have cut interest rates in the past two weeks; some more than one.
The cheapest two-year fix for someone moving in with a 40 per cent deposit is currently 3.64 per cent, while the cheapest five-year fix is 3.89 per cent.
Those who purchase with a 20 percent down payment can receive an interest rate as low as 3.88 percent, while those who purchase with a 10 percent down payment can receive an interest rate as low as 4.12 percent.
For a £200,000 mortgage repaid over a 25-year repayment period, a rate of 4.12 per cent would equate to a payment of £1,069 per month.
But Tom Bill, head of research at Knight Frank, says the latest rate cuts could be offset by feared tax increases coming to the Budget later this month.
In particular, a income tax The rise is said to be possible as Rachel desperately tries to get control of the country’s finances.
Tom Bill said stable mortgage interest rates had supported demand in recent months and bank interest rates were now on a downward path.
‘But a tax-increasing Budget will curb purchasing power and depress sentiment, limiting housing market activity next year.’
The gap between North and South is closing
Prices in the north of England and Scotland continue to rise almost without losing any momentum.
Average property prices in the North East of England rose by 4.1 per cent compared to a year ago, while prices in Scotland increased by 4.4 per cent.
Meanwhile, average prices in London have entered a steady downward trend.
There was a 0.3 percent decrease in the capital as a whole in the period until October, but the declines are sharper in important regions.
Meanwhile, average prices in the suburban area have almost fallen into recession; last year it rose just 0.1 percent across the Southeast.
Budget fears are having a more severe impact on the housing market in the south, says buying agent Jonathan Hopper, managing director of Garrington Property Finders.
‘The reason for this growing divergence between the north and south is amidst all the uncertainty about what property taxes this month’s Budget might hold,’ Hopper said.
What is clear is that this pain will fall disproportionately on higher value homes, putting the south-east of England squarely in the Chancellor’s line of fire. ‘The broadest shoulders’ are strengthened against impact.
‘This is driving prices down and has had a chilling effect on the number of transactions, but it hasn’t stopped them completely.
He added: ‘This is a market suspended between confidence and caution. Every move is tactical, every deal is difficult, and sentiment is fragile.
‘The budget will decide whether pent-up demand will be released or curtailed.’
