New index data published by Halifax shows average UK house prices hit a new record high of £272,992 in November.
This means a monthly change of 1% – the fifth month in a row that house prices have increased – and an annual growth rate of 8.2%.
Halifax managing director Russell Galley believes that a stock shortage is driving the market, with a “strong labour market and keen competition among mortgage providers keeping rates close to historic lows.”
That being said, and as reported previously, lenders are now beginning to increase rates across a multitude of products. In the last 7 days, we have seen rate increase announcements from a number of lenders including TSB and Accord who increased rates on 36 products in their 65%, 75% and 80% LTV ranges.
We are also hearing that the Bank of England plans to loosen affordability criteria, particularly for first-time buyers. This is likely to increase demand and continue to fuel growing property prices.
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