Brit's House Prices Climb Up Again
Looks like the Brits have good news to cheer as house prices are on an upward trend once more! After a six-month-long downturn, the prices have picked up pace and are showing signs of recovery. According to Halifax, the country's leading mortgage lender, home prices rose by 0.5% in November, compared to the previous month, following a 1.2% surge in October.
Though the average house price of £283,615 was 1.0% lower than a year ago, it was 1.7% higher than its September low. Kim Kinnaird, Halifax's director, highlighted the key factor driving this trend, stating, "The resilience of house prices in 2023 will continue to be shaped by a shortage of available properties rather than a significant strengthening in buyer demand."
However, mortgage approvals indicate a slight upturn, which is a positive sign for the future of the housing market. The rise in house prices was due to a standstill in mortgage costs, as the central bank held the prime rate at 5.25%. Experts predict that interest rates will likely remain untouched at the upcoming interest rate decision on December 14.
The Bank of England is preparing the financial markets and the economy for a prolonged phase of high interest rates, despite the noticeable easing of inflationary pressure.
Key Insights
- House prices have bounced back after a six-month decline, with the average price rising 0.5% in November.
- Even though the average house price is 1.0% lower than a year ago, it is 1.7% higher than its September low.
- The tight housing market, with a shortage of properties, is a primary factor contributing to the resilience of house prices.
- Mortgage approvals suggest a positive trend in potential homebuyers.
- The Bank of England anticipates maintaining high interest rates, given the persistent inflationary pressure.
