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Housing prices have broken a new record, but growth is expected to slow

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Housing prices have broken a new record, but growth is expected to slow

The average house price in the UK rose by more than £ 3,000 in April, making it the longest monthly increase since 2016, according to the index.

Halifax said the average property value rose 1.1% or £ 3,078 last month.

Russell Gelli, managing director of Halifax, said: “It was the 10th month in a row that real estate prices have risen, making it the longest of continuous gains since late 2016.”

The typical house price became a new record of 286,079 pounds – an annual increase of 10.8%.

At current growth rates, the price of a regular home could reach £ 300,000 by the end of the year, but Halifax said it remains unlikely given the predicted economic conditions.

Prices have risen by an average of £ 47,568 over the past two years, the report said.

The previous five and a half years took to make the equivalent jump, with prices rising by an average of £ 47,689 between October 2014 and April 2020.

Mr Galley said: “The imbalance between supply and demand persists, with a lack of new real estate appearing on the market to meet the needs of potential buyers, and strong competition to provide real estate that raises prices.

“There is evidence that this demand is focused on large family homes rather than smaller facilities such as apartments. Over the past year, prices for detached and two-bedroom apartments rose by more than 12% compared to only 7.1% for apartments.

“The net increase in cash for individual properties is just under £ 50,000 over the last year almost five times more than for apartments.”

Housing prices continue to grow despite the cost of living crisis, which is putting financial pressure on households.


As interest rates rise and inflation shrinks household budgets even more, it remains likely that house prices will slow by the end of this year.

Russell Gally, Halifax

Inflation is expected to reach 10% plus in the coming months, and the Bank of England raised the base rate to 1% this week, boosting spending for some borrowers.

Mr Ghali continued: “The obstacles facing the economy as a whole cannot be ignored.

The ratio of housing prices to income is already at its highest level (usually 7.2 times the average full-time salary), and due to rising interest rates and inflation, which further shrink household budgets, it remains likely that the growth rate of house prices will slow down by the end of this year.

Across the UK, Halifax said Northern Ireland is the highest annual growth in house prices, at 14.9%, although the average house price there remains slightly below the record of £ 230,931 set in the summer of 2007.

Average house prices in Wales and Scotland broke new records in April at £ 214,396 and £ 196,471 respectively.

Six of the nine British regions recorded annual inflation in housing prices in double digits.

In the south-west, the average house price first surpassed the £ 300,000 barrier at £ 301,632.

Annual inflation in housing prices London continues to lag behind the rest of the UK by 6.2%.

However, the average property price in London remains much higher than in the rest of the UK, and the latest average price of £ 537,896 is also a new record for the city, Halifax said.


The boom in house prices will end soon

Andrew Montlake, Coreco

Nathan Emerson, executive director of Propertymark Real Estate, said: “Our latest housing market report records a rise in new potential registered buyers at the real estate office to 84 in March, however with the Bank of England’s recent announcement of rising interest rates, it’s undoubtedly will show some effect in the market in the coming months. “

Andrew Montlake, managing director of mortgage broker Coreco, said: “Despite the fact that prices rose sharply again in April, the boom in house prices will soon end.

“Vacation stamps, record low interest rates and the race for space have caused an unprecedented surge in demand and activity, pushing prices higher, but now we are coming to an end to the pandemic.”

Mark HarrisCEO of mortgage broker SPF Private Clients, said: “With another interest rate hike this month and the potential to come in the future, brokers are busy.

“Borrowers are increasingly concerned about rising mortgage rates and are seeking, in particular, to secure a fixed rate before they continue to rise.”

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “Last month we asked people how much their monthly mortgage payments should grow this year to put pressure on their finances, and 10% of people said yes £ 50 would be enough.

“After the increase began to approach £ 100 a month, a third of people said they would face difficulties, and with an increase to £ 200 a month two-thirds said they would fight. Unfortunately, such rises are possible. “

Here are the average house prices in April with the following annual growth, according to Halifax:

– East Midlands, 237,466 pounds, 12.8% – East of England, 334,570 pounds, 11.9% – London, 537,896 pounds, 6.2% – North East, 163,431 pounds, 8, 9% – North West, £ 217,199, £ 217,199, £ 217,199, £ 5,500, £ 14,500, 14.9% – Scotland, £ 196,471, 8.3% South East, £ 390,095 , 12.1% – South West, £ 301,632, 14.8% – Wales, £ 214,396, 14.2% – £ 2,416, West Midlands, 24.16% Humber, £ 197,955, 10.3 %

https://www.independent.co.uk/money/house-prices-hit-new-record-but-growth-expected-to-slow-b2072838.html

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