UK house price boost: ‘remarkable turnaround’ in confidence leads to fastest rate of increase for almost two years

PUBLISHED ON Feb 12, 2020

Britain’s average house price rose at the fastest rate of increase since February 2018.

The average price of a home in Britain stood at £240,054 in January, 4.1 per cent higher than a year previously, according to figures from Britain’s biggest mortgage lender Halifax. It was the fastest rate of increase since February 2018.

The unexpectedly strong monthly rise of 0.4 per cent followed big jumps of 1.8 per cent in December — the largest since February 2007 — and 1.2 per cent in November.

Halifax’s managing director Russell Galley said: “Looking ahead we still expect a moderate rate of house price growth over the course of the year. Demand is likely to continue to exceed the supply of properties for sale across the UK, with the subdued pace of new building also adding to upwards price pressure.”

Marc von Grundherr, director of London agents Benham and Reeves, said: “This turn around is really quite remarkable and demonstrates the absolute resilience of our bricks and mortar market.

“We can now expect more of the same and we can look forward to a Brexit inspired bump in house prices now that we have finally departed and these green shoots will almost certainly be cultivated by the Government with a further Budget boost come Spring.”

David Westgate, group chief executive at consultants Andrews Property Group, said: “The pent-up demand in the market that has grown over the past three and a half years is now really starting to come through.

“The aspirational buyers who have been missing for so long have also returned in force. February will be the real test of confidence but with interest rates still at record lows and the jobs market resilient, the outlook is favourable.”

Source: Homes and Property UK