Soaring House Prices in Britain Break Previous Records, according to Halifax
🔥🔥🔥 UK Property Market Sizzles at Record Highs 🔥🔥🔥
The UK property market is currently on fire, with the average house price reaching a whopping £299,138, as revealed by Halifax. This surge represents a 0.7% increase, making up for the earlier 0.2% contraction seen in December.
Although the average house price is at an all-time high, the annual growth is at a modest 3%, last seen in July 2022 when the growth was a mere 2.4%.
Despite the sky-high house prices, affordability remains a struggle for many potential buyers. Amanda Bryden, head of mortgages at Halifax, admits that the demand for new properties and growth in lending is strong. However, she warns that "affordability is still a challenge for many would-be buyers".
The increase in property prices could be attributed to the rising demand for homes as buyers race to avoid the upcoming increase in stamp duty coming in April.
This news comes just a few weeks after the Bank of England slashed the interest rates by 0.25%, making borrowing cheaper. Analysts are predicting further cuts to interest rates, with Capital Economics forecasting that rates will fall to 3.5% by early 2026.
Financial planner Holly Tomlinson believes that the base rate cut will help ease affordability and could provide some relief to first-time buyers, who have been suffering from stretched affordability in the past few years.
House Prices Across the Nation
House prices vary significantly across the UK’s four nations. For instance, the average house price in England is far higher than in Wales, with England leading the property price race.
Northern Ireland, with an average house price of £205,473 and a growth rate of 5.9%, boasts the strongest price growth. This figure is impressive but falls short of the 7.3% growth rates seen last December.
Prices in Wales grew by 3.6% year-on-year, with the average house costing £227,397. Scotland, with a 2.4% growth rate, averages around £210,690.
England’s property market also shows significant regional differences. The average price of a home in London stands at a staggering £548,288, almost double the national average. Meanwhile, the North East shows the most significant growth, with average home prices ballooning by 5.2% since last year to £178,696.
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- In light of the UK property market's surge, prospective investors might find investing in real estate an attractive personal-finance opportunity, given the growth in house prices and potential for further increases due to increased demand.
- Amidst rising house prices, first-time buyers might find relief in the recent Bank of England's decision to lower interest rates, making borrowing cheaper and thus reducing the overall cost of securing a mortgage.
- As house prices continue to rise and regional differences persist, those in the finance industry should keep a keen eye on UK real-estate markets, particularly the North East and England, which show significant property-price growth compared to other regions in the United Kingdom.
