9 August UK House Prices Hit All-Time Average High
In a surprise announcement UK house prices experienced an unexpected rise in July with a 3.3% rise within the month compared to a 1.8% rise in the previous month.
This resulted in the average UK house price hitting £230,280 – the highest ever.
The figures, released by The Halifax, were accompanied with a statement from Russell Galley the Managing Director, who said: “While the quarterly and annual rates of house price growth have improved, housing activity remains soft. Despite the recent modest improvement in mortgage approvals, the latest survey data for new buyer enquiries and agreed sales suggest that approvals will remain broadly flat until the end of the year”
His broad point being that the accompanying rise, last week, of the Bank of England’s base rate is unlikely to have a significant effect on either the affordability of mortgages or the transaction volumes of house sales.
He added: “In contrast, the labour market remains robust, with the numbers of people in employment rising by 137,000 in the three months to May with much of the job creation driven by a rise in full-time employment. Pressures on household finances are also easing as growth in average earnings continues to rise at a faster rate than consumer prices”.
The rise was unexpected
The rise, which was unexpected – Nationwide having released earlier forecasts of a 0.6% monthly rise – are being attributed chiefly to a shortage of housing stock and the continuing low rate of mortgages.
A north London estate agent was quoted as saying: “Viewings are up but it is hard to obtain commitment as political and economic uncertainty remain. We’re looking forward to a reasonably active summer and autumn period as fewer but more serious buyers come to terms with changed market conditions.”
Here at Walton Estates we have booked a number of viewings. In July alone we have received numerous offers, with three properties going under offer and one property completing.
Other voices are pouring oil on the waters, explaining that housing affordability verses income has remained reasonably steady.
All suggestions point to the market remaining stable with the rate of sales and mortgage approvals escaping any undue effects of the unexpected average house price record.
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