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UK house prices hit new record high of £286,079

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Property market shrugs off cost of living crisis and rising rates, but for how long?
UK house prices hit new record high of £286,079

The average UK house price rose again in April by 1.1%, or £3,078, in the month, according to Halifax.

The lender said this was the 10th consecutive month that property values have increased, the longest run of continuous gains since the end of 2016.

It added that average house prices are now up by £47,568 over the last two years. And prices have soared 10.8 per cent in the last year alone.

Russell Galley, managing director of Halifax, said: “Despite the current economic uncertainty, the strong increases we’ve seen in house prices show little sign of abating. Demand in the housing market remains firm and mortgage servicing costs are relatively stable with fixed-rate deals making up around 80% of mortgages on homes across the industry, protecting many households from the effects of rate rises so far.

“However, the headwinds facing the wider economy cannot be ignored. The house price to income ratio is already at its highest ever level, and with interest rates on the rise and inflation further squeezing household budgets, it remains likely that the rate of house price growth will slow by the end of this year.”

Sundeep Patel, director of sales at Together, added: “Even with the cost-of-living crisis strangling consumer’s finances, housing continues to be in demand with property deals completing at record rates.

“However, with inflated prices for goods such as food and fuel, and typical mortgage rates set to double, first time buyers attempting to scale the property ladder still face tough affordability challenges.

“There remains too many buyers chasing too few properties and the frenzied spring moving season will be fuelled by an excess of demand and competitive pricing. But as budgets continue to tighten and people’s financial priorities shift, the property market boom may start to taper off as households reorder their finances and ability to spend. ”

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