Latest data released by Halifax - 6 November 2020
- Prior +1.6%
- House prices +7.5% vs +8.2% y/y expected
- Prior +7.3%
- Average house price £250,457
Slight delay in the release by the source. The annual change marks the highest growth in house prices since June 2016, as the UK housing market continues to stay more resilient after the bounce back from lockdown measures in Q2. Halifax notes that:
"This level of price inflation is underpinned by unusually high levels of demand, with latest industry figures showing home-buyer mortgage approvals at their highest level since 2007, as transaction levels continue to be supercharged by pent-up demand as a result of the spring/summer lockdown, as well as the Chancellor's waiver on stamp duty for properties up to £500,000.
"While Government support measures have undoubtedly helped to delay the expected downturn in the housing market, they will not continue indefinitely and, as we move through autumn and into winter, the macroeconomic landscape in the UK remains highly uncertain. Though the renewed lockdown is set to be less restrictive than earlier this year, it bears out that the country's struggle with COVID-19 is far from over. With a number of clear headwinds facing the housing market, we expect to see greater downward pressure on house prices as we move into 2021."