According to Halifax, the growth level of UK house prices has risen in the year leading up to October. They suggest that the “improving economic conditions” are a major driving force behind this rise.
The largest mortgage lender in the country has said that the price of houses, across the UK, had gone at a yearly rate of 9.7% in October. This equates to a 1.1% rise on the month of September.
In the month of October alone, the price of houses went up by 1.1% in the aftermath of the 0.9% drop in September.
This means that the average cost of a home in the UK now sits at £205,240, which is a new record high.
The Halifax housing economist, Martin Ellis, commented saying:
“Improving economic conditions and household finances, together with sustained low mortgage rates, have boosted housing demand during 2015.
“Strengthening demand is filtering through into higher sales levels, although the ongoing shortage of supply is acting as a significant constraint on activity.”
Mr Ellis went on to say that the decreased supply, along with increased demands, were sure to maintain “upward pressure on house prices” in the months ahead.
This news comes as the Countrywide, estate agent group, declared that it was predicting a fall in its yearly profits due to the lack of new properties being brought onto the market. The group is one of the largest of its kind in the UK, with Hamptons and Bairstow Eves among the well-known brands that it encompasses.
A spokesperson for Countrywide said:
“The anticipated post-election recovery in residential transactions failed to materialise in any significant way”.
Nationwide, the rival mortgage lender, said last week that the price of houses across the country had gone up by 3.9% in the year to October.
According to them, the values of properties had gone up 0.6% more than in the month of September. The building society reported that the average price of a property in the UK had gone up to £196,807.
The housing crisis has become a hotly debated topic in parliament in recent times, with David Cameron announcing that he wants to start a “crusade” to build new properties up and down the country.