The UK posted an average house price of £272,992 in November, a record high and an increase of 1.0% from the previous month. FTSE 100 is up +1.24%, GBPUSD is down -0.04%.
- On a quarterly basis, UK house prices rose by 3.4% from the prior year, while the annual gain was 8.2%.
- Annual house price inflation was at 9.1% for first-time buyers, compared to 8.8% for home movers.
- Wales led the annual house price increases in the UK, with a yearly surge of 14.8%, while London lags with a gain of 1.1%. House prices in London are still the highest at £521,129 compared to the rest of the UK.
- Halifax’s Managing Director Russell Galley says the uptick in UK house prices reflects shortages of available units, low mortgage rates, and strong labor market.
- Galley says he does not expect the surging prices to be sustained next year due to dwindling household budgets and high house costs to income ratios.
- The house price increase now happens for the fifth straight month. House prices have increased by £33,616 since the start of the coronavirus lockdowns, which represents a monthly £1,691 gain.