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House prices up almost 10% in a year
Prices in the three months to October were 9.7% higher than in the same three months last year
House prices across the UK rose by nearly 10% in the third quarter of the year compared to 2014, according to Halifax.
The lender also noted that average property prices in the last three months (August-October) were 2.8% higher than in the preceding three months.
Home sales were also up in September, according to the latest figures from HMRC, which showed a 1% jump between August and September, to 106,030 sales.
This rise in demand and prices has been driven by improving economic conditions and household finances, together with sustained low mortgage rates. And yesterday the Bank of England voted again to keep interest rates on hold.
Martin Ellis, Halifax’s housing economist, said:
“Strengthening demand is filtering through to higher sales levels, although the ongoing shortage of supply is acting as a significant constraint on activity.
“The imbalance between supply and demand is likely to persist over the coming months, maintaining upward pressure on house prices.”
Stephen Smith, director of housing partnerships at Legal & General, warned that rising prices would make it harder for many people to buy a home.
“It’s great to see that strong economic conditions, such as low inflation and rising wages, are helping people to save for a deposit. However, for many people, rising house prices are outpacing the increased spending power that these conditions bring, which is pushing them out of the market. In order to reduce the level of competition for homes, the Government and industry must work together to bring more properties on to the market, by ramping up housebuilding whilst also encouraging more efficient use of current housing stock.”