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UK House Price Growth Goes to 13.4% – Nationwide House Price Index

Average house price growth in the UK has risen to 13.4 per cent, according to the latest Nationwide House Price Index, released yesterday.

The figures, released yesterday, show that prices grew 0.7 per cent month on month, after the taking into account of seasonal factors.

Commenting, Robert Gardner, chief economist for Nationwide, said: “Annual house price growth accelerated to 13.4 per cent in June, the highest outturn since November 2004. While the strength is partly due to base effects, with June last year unusually weak due to the first lockdown, the market continues to show significant momentum. Indeed, June saw the third consecutive month-on-month rise (0.7 per cent), after taking account of seasonal effects. Prices in June were almost 5 per cent higher than in March.”

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There was much comment on the increase from within the industry. Sundeep Patel, director of sales at Together, said: “Another month of strong growth for house prices goes to show just how competitive the race for space has become, with buyers still eager to snap up properties at pandemic prices, ahead of the first taper for the Stamp Duty holiday extension ending this week. Today’s figures show house prices were up by 0.7 per cent month-on-month and annual house prices rose by a staggering 13.4 per cent – the highest level recorded since November 2004.”

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He added: “That said, from the second half of the year onwards, we are expecting to see things start to slow down as potential buyers adapt to this next phase of the pandemic, without Government support and tax breaks. Whatever property financing is needed in the future, lenders who can offer a degree of flexibility are going to be highly sought after, as people look to pursue property plans against their changing needs in the market.”

Others were far more critical.

Guy Harrington: “This is only going to end one way. Given the economic backdrop and with government support schemes ending in a few months, this insane level of growth is long overdue a correction. In some rural hotspots houses are selling for 40 per cent over the asking price. The UK housing market has a rocket attached that is burning low on fuel and once this perfect storm passes, we are headed for a serious shock to the system.”


Source: Property Wire

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Annual house price growth in UK at its slowest for six years

THE brakes have been slammed on annual house price growth – which has slowed down sharply to the weakest rate seen in six years, according to an index.

Across the UK, property values increased by 0.3 per cent annually in November, following a 1.5 per cent annual uplift in October, Halifax said.

The annual increase in November marked the lowest growth since December 2012, the bank added.

The average house price is now £224,578.

House prices tumbled by 1.4 per cent month on month in November, wiping out a 0.7 per cent increase seen the previous month.

Halifax said house prices have now fallen for three months out of the past four, on a month-on-month basis.

Russell Galley, managing director, Halifax, said: “House price growth has slowed as we approach the end of the year, falling from 1.5 per cent in October to 0.3 per cent in November, with the average cost of a home now £224,578.

“While this is the lowest rate of growth in six years, it remains within our forecast range of zero to 3 per cent for 2018.

“High employment, wage growth and historically low mortgage rates continue to make home ownership more affordable for many, though the need to raise a significant deposit still acts as something of a restraint on the market.

“This is largely offset by relatively limited supply of new and existing properties for sale, which continues to sustain house prices nationally.”

Mike Scott, chief property analyst at estate agent Yopa, said Halifax’s figures suggest “that the usual Christmas slowdown in the housing market has started early this year, as people wait for the outcome of the current political turmoil before making long-term commitments, such as buying a new home”.

Howard Archer, chief economic adviser at EY Item Club, said: “We suspect that the housing market will be relatively lacklustre over the coming months – although there are varying performances across regions with the overall national picture dragged down by the poor performance in London and parts of the South East.

“Consequently, we expect overall house price gains across the UK over 2019 will be limited to around 2 per cent.”

Lucy Pendleton, founder director of estate agents James Pendleton, said: “This is less about Brexit, than it is about the natural cycle of any market that has seen strong advances. It comes down to affordability, not politics.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Lenders remain incredibly keen to lend and that is a consistent message we are getting from all of them – they want to do more.

“Some are doing this by topping the ‘best buy’ tables with some very competitive rates, such as five-year fixes from less than 2 per cent.

“But not all can compete on rate, depending on how they are funded, so others are looking at increased innovation – taking one year’s accounts for self-employed borrowers, tweaking loan-to-values, or becoming more competitive when it comes to lending at 95 per cent loan-to-value. This is all good news for borrowers.

“This year has been remarkably consistent for the market when you consider the uncertainty around Brexit, with interest rates remaining fairly flat – a trend we expect to continue into next year.”

Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors, said: “Looking forward, we don’t expect activity to change much, bearing in mind seasonal and political distractions. On the ground, lethargy is replacing energy.”

Source: Irish News