UK house price growth hits highest quarterly rate since January as supply remains low

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UK house price growth hits highest quarterly rate since January as supply remains low

Prices rose by 0.3% between September and October, following a 0.8% increase in September, taking the average price to £225,826

House prices across the UK rose at their fastest quarterly rate since January in the three months to the end of October, according to figures published by Halifax.

Prices in the three months to the end of last month were 4.5 per cent higher than in the same three months a year earlier, the bank said on Tuesday.

They rose by 0.3 per cent between September and October, following a
0.8 per cent increase in September, taking the average price to £225,826. That’s the highest on record and 2.8 per cent higher than where it was in January, Halifax said.

“The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, continues to support house prices and is likely to do so over the coming months,” said Russell Galley, managing director at the Halifax Community Bank

He also said, however, that “increasing pressure on household finances and continuing affordability concerns are some of the factors likely to dampen buyer demand”.

Inflation hit a five-year high of 3 per cent in September, largely as a result of the slump in the pound in the aftermath of last year’s Brexit vote.
And separate data last week from Nationwide showed that house price growth had cooled to 0.2 per cent in October from an increase of 0.4 per cent in September.

Nonetheless, Russell Quirk, the founder and chief executive of online estate agent eMoov.co.uk, said that even the recent increase in interest rates was unlikely to seriously slow momentum in the market.

“Although the increase may stretch some who have borrowed beyond their means and are now treading on thin ice, it is unlikely to impact the wider market,” he said. “The cost of borrowing money remains at an ultra-low level and this, coupled with persistent buyer demand, should see the market continue to gain momentum,” he added.