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First-time Buyers

House prices up 6.2% – Halifax

paulajohn
Written By:
Posted:
03/10/2013
Updated:
03/10/2013

Average UK house prices continue to rise in September, according to the Halifax House Price Index.

The annual rate of house price inflation has grown again, reaching 6.2% last month, with the average value of a UK home now standing at £170,733.

Prices increased by 0.3% in September compared to August, according to the longstanding index compiled by the UK’s largest mortgage lender.

Halifax attributed the rise to demand outstripping supply,as a result of low interest rates and improving consumer confidence.

Nicholas Ayre, managing director of homebuying agency Home Fusion, said:

“The housing market continues to gather momentum after years in the doldrums. This will inevitably fuel talk of a house-price bubble, even though the recent strong increase in private housebuilding on the back of the first phase of the Help to Buy scheme is encouraging. However, will flats and houses be built fast enough to dampen rising demand and will some of the new developments in London particularly be at a price point suitable for first-time buyers?

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“While prices continue to soar in London, particularly the top end of the market, transactions and lending levels are running at a fraction of what they were at the height of the housing boom. This will be a long, slow recovery and while there are fears that the second stage of Help to Buy, brought forward to next week, will fuel a bubble, the Bank of England Governor yesterday restated that he has his eye on it. There will be no return to a boom-bust cycle.

“While it’s useful to keep an eye on national average indices, ultimately it’s about the buyer making their own call. Don’t be too swayed by the fact that indices tell us prices are rising and end up panic buying in case you are priced out further. The buyer has to pay the mortgage and needs to ensure they can afford it before taking the plunge. Interest rates may not be rising just yet but they will at some point so it’s crucial that you can afford your mortgage, whether buying via Help to Buy or not.”