UK house prices are growing annually by 9.7 per cent according
to the Halifax, which says "improving economic conditions" lie behind
the acceleration in values.
The average price of a flat or house across the country is now
£205,240 says the mortgage lender.
Its latest house price index reveals that the annual rate of
growth has gone from 8.6 per cent a month ago to 9.7 per cent now. During
October itself, house prices rose by 1.1 per cent, following last month's
decline of 0.9 per cent.
"House prices in the three months to October were 2.8 per
cent higher than in the previous three months. This was slightly above the
average of 2.5 per cent on this measure over the first nine months of the year”
explains Halifax housing economist Martin Ellis.
“Improving economic conditions and household finances, together
with sustained low mortgage rates, have boosted housing demand during 2015.
Strengthening demand is filtering through in to higher sales levels although
the ongoing shortage of supply is acting as a significant constraint on
activity” he says.
“The imbalance between supply and demand is likely to persist
over the coming months, maintaining upward pressure on house prices.”
The Halifax data appears in line with the findings of Connells,
the agency chain which has reported that its prices rose by an average of
around three per cent in the third quarter of the year, with another two per
cent expected by the end of December.
Its new home sales have been particularly strong - they are
running 40 per cent higher than 2014.
Meanwhile Savills is the latest high-end agency to give its forecast for the
housing market in 2016 and following years.
It says that overall the scale of interest rate rises will
dictate the pace, distribution and sustainability of house price growth, but it
anticipates that average UK prices will rise 17 per cent by the end of 2020,
but with big regional variations.
For example, the south east of England will see price rises of
21.6 per cent in that time while the north east will see increases of only
around 12.0 per cent. London prices rill rise 15.3 per cent on average by the
end of 2020 but with some outer areas - notably Walthamstow and Lewisham - outperforming
the higher-value inner areas.
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