Average propery price now tops £270K
UK house prices hit a record high level in October, said Halifax.
The lender noted that the average property price is now £270,027, the first time it’s breached the £270K mark.
That’s a 0.9% rise on September and 8.1% higher than last October, with Wales, Northern Ireland and Scotland driving growth.
Wales was the strongest performing nation with annual house price inflation of 12.9% while Northern Ireland has recorded its strongest growth in four months at 11.3%.
House prices rose by 8.6% in Scotland.
In England, the North West is the strongest performing region with annual price growth of 10.4%, with London the weakest at 0.8%.
Russell Galley, managing director of Halifax, said: “One of the key drivers of activity in the housing market over the past 18 months has been the race for space, with buyers seeking larger properties, often further from urban centres.
“Since April 2020, the first full month of lockdown, the value of the average property has soared by £31,516 (13.2%).
“First-time buyers, supported by parental deposits, improved mortgage access and low borrowing costs, have also helped to drive price growth in recent months. First-time buyer annual house price inflation is now at a five-month high of 9.2%.”
Lucy Pendleton of estate agents James Pendleton, added: “Despite the Bank of England’s reluctance to raise interest rates this week, everyone knows it’s coming and the only good reason to delay is if your employment situation is precarious.
“That means if someone is thinking of a move, the thought of putting it off and buying with not one but two rates rises possibly behind them by next summer is providing the motivation to just get on with it. That determination is particularly acute for first-time buyers who are more vulnerable to small rises in interest rates and often stretch their budget as far as possible.
“While some predict a cooling in demand as rates begin to rise, the opposite may be true in the short term. Even if rates reach 1% by the end of next year, it’s a long way short of the 5% that many older homeowners consider normal. A tangible rush to buy could last another 12 months at least.”