By - On a monthly basis, house prices in November were 1.2% higher than in October
- In the latest quarter (September to November) house prices were 3.8% higher than in the preceding three months (June to August)
- House prices in November were 7.6% higher than in the same month a year earlier – the strongest growth since June 2016
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.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“No Covid vaccine required for the UK property market as it continues to defy previous predictions of a market crash, rising like a pheonix from the ashes of pandemic uncertainty to register yet further positive price growth.”
“This market histeria is unlikely to simmer until the March deadline at least, at which point the urgency of a potential stamp duty saving will vanish and we should see the market return to a steadier speed.”
Group CEO of Enness Global Mortgages, Islay Robinson, commented:
“The current stamp duty holiday has propelled the market back to a full bill of health despite bringing its own problems in the form of market delays as the industry scrambles to cope.”
“Of course, the clock is ticking in respect of the holiday and while we should see a reduction in demand come next year, it’s unlikely the market will simply fall off a cliff.”
“Confidence has returned and we’re seeing this at all levels of the market and from foreign shores. This high-end and foreign buyer demand will help boost an already impressive recovery and continue to drive price growth well into next year.”
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