Average UK property price hits a new record high of £272,992 last month, rising in November by 8.2 per cent compared to the same month a year earlier, according to Halifx, publishing its monthly index this morning.
Prices increased by 1 per cent month-on-month in November while quarterly house price inflation is now at its strongest level since late 2006, at 3.4 per cent, while Welsh average property prices are breaking past the £200,000 mark for the first time ever.
“This is the fifth straight month that average house prices have risen, with typical values up by almost £13,000 since June, and more than £20,000 since this time last year,” said Russell Galley, managing director of Halifax.
Galley said this morning: “On a rolling quarterly basis the uptick in house prices was 3.4 per cent, the strongest gain since the end of 2006, bringing the new
average property price up to a record high of £272,992.”
“Since the onset of the pandemic in March 2020, and the UK first entering lockdown, house prices have risen by £33,816, which equates to £1,691 per month.”Russell Galley, managing director of Halifax
“The performance of the market continues to be underpinned by a shortage of available properties, a strong labour market and keen competition amongst mortgage providers keeping rates close to historic lows,” he continued.
London continues to lag the rest of UK in its rate of house price growth, with annual inflation of just 1.1 per cent, though this was up slightly from October.
However at an average of £521,129 properties in London continue to be much more expensive than in all other parts of the country.
Galley pointed out that “those taking their first step onto the property ladder are also playing an important role in driving activity, with annual house price inflation for first-time buyers at 9.1% compared to 8.8% for homemovers.”
Commenting on today’s figures, Guy Gittins, CEO of Chestertons, said: “We normally see a seasonal market slowdown towards the end of the year but, this November, witnessed a comparably active market instead. Our offices registered a 16 per cent increase in sales vs October, which proves that buyer appetite remains strong.
“November’s strong buyer demand has reduced the supply of properties available for sale which, at the end of November, was 12 per cent lower than the same time last year.
” As a result of demand outstripping supply, the market has seen a 30 per cent drop in sellers willing to lower their asking prices. Looking ahead, we are still seeing plenty of unsatisfied buyer demand with enquiries up 12 per cent from November last year,” Gittins said.
Also zooming in on today’s house price data, Jan Crosby, head of infrastructure, building and construction at KPMG UK, said that “it appears that house price inflation is entrenched, at least until supply chain issues ease and housing stock finally starts to catch up with demand.”
“It’s a strong market in which sellers continue to have the whip hand. Available property is selling very quickly, but there remains a disparity between the rising prices and purchasing power, with wage rises outstripped by inflation. This will continue to impede first-time buyers in particular as we head into 2022,” he continued.
“As sourcing building materials does become more straightforward – hopefully sooner rather than later – developers will need to focus on fulfilling demand for affordable housing while ensuring they invest to meet the green standards set out in the government’s Heat and Buildings Strategy,” Crosby concluded.