Friday’s Halifax data showed that UK home prices picked up momentum last month, attaining the highest yearly rise rate since February as customers brushed aside the possibility of interest rates hike by the BOE.
Home prices grew 0.8% in September, despite predictions made by analysts in a Reuters poll. What’s more, prices during the three months preceding September floated 4% higher against the mean expected rise of 3.6%.
However economists expressed a bit of disbelief towards the data, which differs palpably with more moderate numbers of another lender Nationwide that came as a harbinger of a return to more lively growth of UK’s home prices.
Notwithstanding certain strengthening in mortgage activity from the lows of the middle of the year, the general view on the significant housing market uplift is sceptical, EY ITEM Club’s Howard Archer pointed out. His prediction was that UK’s home prices were likely to be muted for the remaining months of 2017 and would edge up 2-3% in the next year.
Prices were pushed by deficit of houses for sale and growing numbers of full-time workers, although demand might be narrowed over time by mounting inflation and heightened cost of property, Halifax said.