UK house prices rose at the fastest pace since before the financial crisis in December after a sixth consecutive month of growth, according to Halifax.
The average price of a home rose 1.1 per cent last month to a record £276,091 (€330,701), the mortgage lender said in a report published Friday. The gain from a year earlier was 9.8 per cent, the most since July 2007.
It means a typical property has increased in value by more than £24,500 over the past 12 months. That’s the biggest gain in cash terms since 2003.
The housing market has defied the plight of the wider economy since the pandemic began, boosted by tax incentives, a shortage of stock and demand for properties outside urban areas with room to work from home.
But momentum is almost certain to slow this year as stretched affordability, rising interest rates and a looming cost of living surge put household budgets under strain.
“Our expectation is that house prices will maintain their current strong levels, but that growth relative to the last two years will be at a slower pace,” said Russell Galley, managing director at Halifax.
“However, there are many variables which could push house prices either way, depending on how the pandemic continues to impact the economic environment.” – Bloomberg
