UK house prices rose by 6.5 percent in the months of June to November, Halifax said on Monday, with price increases now cancelling out average stamp duty savings.
In the quarter from September to November, house prices were 3.8 percent higher than they were in the preceding quarter of June to August, Halifax said, and 7.6 percent higher in November compared with the same month last year—the strongest growth in the housing market since 2016.
“With mortgage approvals at a 13-year high, the current market continues to be shaped by a desire for more space, the move from urban to rural locations and indications of a trend for more home working in the future,” Russell Galley, the managing director of Halifax, said in a statement.
“And while industry data shows agreed sales and new instructions to sell fell to their lowest in the past five months, both remain at historically high levels and well above seasonal norms.”
Mortgage approvals also rose in October, with the latest Bank of England figures showing the number of mortgages approved rose 6 percent to 97,532, a 51 percent increase on the same period last year.
“The housing market has been much more resilient than many predicted at the outset of the pandemic, and indeed many households remain confident about further price growth next year. However, the economic environment continues to look challenging,” Galley said.
“With unemployment predicted to peak around the middle of next year, and the UK’s economy not expected to fully recover the ground lost over 2020 for a number of years, a slowdown in housing market activity is likely over the next 12 months.”