Halifax today released their latest House Price Index data which showed that despite everything going on around us, House prices continue to increase and the market shows remarkable resilience.
House prices increased by 13% year on year which is the highest since 2004. That’s a 1.8% growth in June which is the twelfth consecutive monthly rise, leaving a typical UK property now costing £294,845.
Please see my comments below:
“More insane, economics-defying growth from the UK housing market. It’s like bricks and mortar in The Upside Down. Inflation is soaring, rates are rising, our government is in chaos, and house price growth is off the scale.
“Despite this exceptional growth figure, increased borrowing costs and the immense pressure on household finances will almost certainly start to temper demand in the months ahead, which will see the rate of price growth slow further during the second half of the year.
“The one constant in these times of flux, of course, is the lack of supply and homes being built. The abject lack of good quality, affordable housing will support prices even as we go through an unprecedented cost of living crisis.
“At the moment, mortgage lenders continue to be inundated with applications, which is one of the key reasons behind the latest set of rate rises as they try and temper demand and restrict the flow of new business that they are struggling to cope with.
“It will be interesting to see whether demand does ease up as there are so many complexities around the demand for housing and its emotional attachment with the British psyche. Rates may be significantly higher, but they are still low and affordable for many. All eyes will be on what the Government does next and how the money markets react.”