Russell Galley, Managing Director of Halifax explains: “House prices rose by more than 1 per cent in November, adding almost £3,000 to the cost of a typical UK home.
“At just over £253,000, the average property price has risen by more than £15,000 since June. In percentage terms that equates to 6.5 per cent – the strongest five-monthly gain since 2004.
“With mortgage approvals at a 13-year high, the current market continues to be shaped by a desire for more space, the move from urban to rural locations and indications of a trend for more home working in the future.
“And while industry data shows agreed sales and new instructions to sell fell to their lowest level in the past five months, both remain at historically high levels and well above seasonal norms.”
Russell adds: “The housing market has been much more resilient than many predicted at the outset of the pandemic, and indeed many households remain confident about further price growth next year.
“However, the economic environment continues to look challenging.
“With unemployment predicted to peak around the middle of next year, and the UK’s economy not expected to fully recover the ground lost over 2020 for a number of years, a slowdown in housing market activity is likely over the next 12 months.”
Buyer demand could be driven in the short term by the fact that some lenders are returning to the low deposit mortgage sector and re-introducing 95 and 90 per cent Loan To Value (LTV) products.
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Published at Mon, 07 Dec 2020 20:22:33 +0000