Latest figures from leading lender the Halifax showed record UK house prices last month, with the average home up by 9.7% or 24,500 on a year ago and £37,500 on two years ago.
The bank warned that while an imbalance between supply and demand is continuing to maintain prices this year, the rate of growth will slow, as people’s finances are increasingly squeezed by rising energy, broadband and food costs. It added that after the market’s extraordinary performance last year, in the wake of the stamp duty holiday, price rises have continued to outstrip growth in earnings, leaving affordability at an historic low.
“While the limited supply of new housing stock to the market will continue to provide some support to house prices, it remains likely that the rate of house price growth will slow considerably over the next year,” said Russell Galley, managing director at the Halifax.
The figures also follow the decision by the Bank of England to raise the base rate in an effort to control inflation, which is expected to be reflected in rising mortgage interest costs.
And, in a week when property expert Kirstie Allsopp reportedly claimed young people can achieve homeownership by giving up luxuries such as gyms and lattes, the Halifax acknowledged the challenges faced by generation rent.
Buying and selling at the same time?
Here are 10 things that could go wrong, and often do go wrong, and what, if anything, you can do to avoid them.
Buying and selling at the same time?
Here are 10 things that could go wrong, and often do go wrong, and what, if anything, you can do to avoid them.
“Despite record levels of first-time buyers stepping on to the ladder last year, younger generations still face significant barriers to homeownership as deposit requirements remain challenging,” Russell Galley said.
While these figures are UK averages, regionally, London saw annual growth of 4.5% in January.
Read more about this story in The Guardian.
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