Home prices in Britain are rising at a higher rate than inflation, UK’s biggest lender reports. Prices went up 3.9% in the year to the end of last month, while in October the figure was 4.5%, said the Halifax.
And though there’s a certain slowdown, increase in prices keeps higher than Consumer Prices Index inflation, which at present equals 3%.
Notably, Nationwide – competing lender said the other week prices had climbed by 2.5% only in 2017. Halifax’s data shows that the average home or flat costs £226,821 now.
The supply and demand disproportion helps drive up prices, and the trend seems to stay unchanged for some time to come, but this growth is expected to slow down in the longer term, Russell Galley of Halifax Community Bank said.
Looking ahead it could be said that growing affordability difficulties will likely lower demand for housing and force prices to decelerate, he added.
According to the Halifax, the Stamp Duty alterations for first-time buyers made public in November's Budget would be positive in invigorating demand in the capital and the South East. If a house or a flat is sold for up to £500,000, first-time buyers are now not required to pay stamp duty for the first £300,000.