UK House prices rose 3.4% in the three months to the end of November, the highest price increase since 2006, and 8.2% higher than a year ago, the Halifax reports.
The average UK property price hit a fresh record high of £272,992 in November, the UK’s largest mortgage lender said. But added that the pace of growth was unlikely to continue next year as household finances come under pressure.
Property shortage and low interest rates drives demand
House prices in the UK have still been going up for the past five months, despite the end of the stamp duty holiday and the massive activity in the first six months of 2021.
The unexpected growth was "underpinned by a shortage of available properties, a strong labour market and keen competition amongst mortgage providers keeping rates close to historic lows," said Russell Galley, managing director of the Halifax.
The figures are based on the lender’s own data and represent an average across all residential property types in the UK. Figures will vary in some areas and properties. Flats have not enjoyed as the same high growth as houses for instance.
How long will historic low interest rates last?
UK economic growth slowed in October while inflation has risen above 4%. Will the Bank of England raise rates this month amidst further restrictions following the Omicron variant?
The Bank of England’s Monetary Policy Committee (MPC) meets again on 16 December.
CEOs dumping shares
CEOs of companies like Amazon, Tesla and Facebook have sold billions of dollars of their shares in their own companies. Do they know something we don’t?
Don’t get into debt this Christmas
Avoid spending money you don’t have and getting into debt this Christmas.
Have a family ‘truce’ on present values or opt out of the spending spree altogether if you can.
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