UK house prices rise 1.2% in October
By Iain Gilbert
Date: Monday 07 Dec 2020
(Sharecast News) - House prices grew 1.2% month-on-month across the UK in October, increasing the average price of a British home by roughly £3,000.
At just over £253,000, the average property price in the UK has increased by more than £15,000 since June, according to Halifax, the strongest five-month percentage gain seen since 2004.
With mortgage approvals at a 13-year high, Halifax noted that current market continued to be driven by "a desire for more space" amid the move from urban to rural locations and indications of a trend for more home-working in the future.
On the other hand, while data showed agreed sales and new instructions to sell fell to their lowest level in the past five months, both still remained at "historically high levels" well above seasonal norms.
Halifax also highlighted that as the March deadline for the stamp duty holiday approaches, the stamp duty saving of £2,500 on a home costing £250,000 was now far outweighed by the average increase in property prices since July.
Halifax managing director Russell Galley said: "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. 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."
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