Homebuyers who are keen to climb the property ladder might want to start their search for their ideal abode sooner rather than later, as latest figures reveal prices are the highest they have ever been.
According to the latest Halifax House Price Index, there has been annual house price growth of 8.1 per cent, pushing the average value of a home in the UK to £270,027 in October 2021.
Last October, it was more than £20,000 lower at £249,834, showing just how strong house price growth has been over the last 12 months.
The data also reveals there was a quarterly increase of 2.3 per cent, while values also grew by 0.9 per cent from September 2021, which equates to more than £2,500 in one month.
Since April 2020, when the country was in its first full month of lockdown, values have soared by £31,516.
Managing director of Halifax Russell Galley noted this is the fourth consecutive month property values have risen, resulting in the greatest annual rate of growth since June when it hit 8.7 per cent. The highest level was experienced in May, when it reached 9.6 per cent.
This was likely due to the end of the stamp duty holiday on June 30th, which allowed as many as 1.3 million people benefit from the tax break, not having to pay any levy on the first £500,000 of their property price.
Mr Galley also recognised more people are looking for larger houses these days, potentially to enable them to have a designated space so they could work from home more often.
“One of the key drivers of activity in the housing market over the past 18 months has been the race for space, with buyers seeking larger properties, often further from urban centres. Combined with temporary measures, such as the cut to stamp duty, this has helped push the average property price up to an all-time high,” he stated.
In addition to this, there have been low mortgage rates and improved access to finance products for first-time buyers, which has helped to support house price growth.
He noted that the successful performance of the economy has had an impact on the property industry too, as the “labour market has outperformed expectations”, despite most of the country having had to remain closed for much of the past couple of years.
While the anticipated rise of the Bank of England base rate will increase the cost of borrowing, Mr Galley suggested the limited supply of available properties on the housing market could mean property price growth will remain high.
London, in particular, could be in for a strong year in 2022, as Savills predicts prices for homes in prime areas of the capital could rise by eight per cent next year and as much as 23.9 per cent by 2027.
The Evening Standard reported this will be the result of international property buyers returning to the city following the pandemic.
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