Latest data released by Halifax - 7 October 2021
- Prior +0.7%
- House prices +7.4% y/y
- Prior +7.1%
Slight delay in the release by the source. Another month highlighting the robustness of the UK housing market, with the monthly change being the strongest since February 2007 as the average UK property price rises to a record of £267,587.
Halifax notes that:
"While the end of the stamp duty holiday in England - and a desire amongst homebuyers to close deals at speed - may have played some part in these figures, it's important to remember that most mortgages agreed in September would not have completed before the tax break expired. This shows that multiple factors have played a significant role in house price developments during the pandemic.
"The 'race-for-space' as people changed their preferences and lifestyle choices undoubtedly had a major impact. Looking at price changes over the past year, prices for flats are up just 6.1%, compared to 8.9% for semi-detached properties and 8.8% for detached. This translates into cash increases for detached properties of nearly £41,000 compared to just £6,640 for flats.
"Against a backdrop of rising pressures on the cost of living and impending increases in taxes, demand might be expected to soften in the months ahead, with some industry measures already indicating lower levels of buyer activity. Nevertheless, low borrowing costs and improving labour market prospects for those already in employment are likely to continue to provide support.
"Perhaps the biggest factor in determining the future of house prices remains the limited supply of available properties. With estate agents reporting a further reduction in the number of houses for sale, this is likely to underpin average prices - though not the recent rate of price growth - into next year."
