London (Parliament Politics Maganize) – The largest mortgage lender in the UK says that house prices increased once more last month and that there are indications that the market is becoming more active. According to the lender, typical house prices are 1% lower than they were in November of last year, at £283,615.
Halifax Prediction
For the second consecutive month, Halifax reported that prices increased by 0.5% in November. Recent data on mortgage approvals, it added, indicated “a slight uptick” in buyer activity as house loan costs decline. Prices are still lower than they were a year ago, though, and Halifax predicted that market pressure would last till 2024. Halifax‘s results confirm those of competitor lender Nationwide, which stated last week that although rates had increased in November, they were still lower than a year ago.
Kim Kinnair says
Halifax Mortgages’ director, Kim Kinnaird, stated that prices have “held up better than expected” during the previous 12 months. She did, however, note that the lack of available houses was “underpinning” housing prices rather than any discernible increase in buyer desire.
In spite of this, a growing number of mortgage approvals imply that the recent declines in mortgage interest rates “may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases.”
Over the past two years, the Bank of England has gradually raised interest rates in an effort to reduce inflation, the pace at which consumer prices grow. With the Bank’s primary rate being at a 15-year high of 5.25%, purchasing a property has become more costly due to rising mortgage rates. Mortgage rates have, however, decreased recently due to concerns that interest rates have peaked, despite the Bank of England’s repeated warnings not to expect rate cuts anytime soon.
According to the most recent data from research firm Moneyfacts, the average rate for a two-year fixed home mortgage has decreased to 6.01% from 6.86% in July of this year. The number of mortgages issued for homeowners increased to 47,400 in October from an eight-month low of 43,300 in September, according to figures provided by the Bank last week.
Kinnaird warning,
Ms. Kinnaird cautioned that it was hard to predict how long any recovery in the housing market would persist due to the uncertainties surrounding the economy’s future.”Other pressures – like inflation, the broader cost of living, overall employment rates and affordability – mean we expect to see downward pressure on house prices into next year,” she stated.
In Scotland, prices remained steady from the previous year, whereas they decreased by 1.5% in Wales. With an average price of £373,943, south-east England had the most significant yearly decline, with prices 5.7% lower than a year earlier.
London continued to be the most expensive area to buy real estate, with an average house price of £524,592, a 3.8% decrease from the previous year. Since the building society’s data is derived from its mortgage lending, individuals who buy properties with cash or through buy-to-let transactions are not included in the statistics.
Read More: Northampton Business Hub Receives Award for ‘Excellence in Fostering Innovation
Sarah Coles Says
There was “every chance this is a blip rather than a bounce back” in the market, according to Sarah Coles, head of personal finance at Hargreaves Lansdown. She stated that predictions indicate the economy would remain stagnant in 2019 and that “wage freezes and job losses may result from this.” “This would remove two of the most important things underpinning the market right now, so we are still expecting 2024 to be tricky for the property market.”
Halifax is the largest mortgage lender in the UK, but their statistics only include homeowners with mortgages; they exclude individuals who buy properties outright or through buy-to-let agreements. The most recent official statistics available indicate that more than one-third of home purchases are presently made to cash purchasers. According to Halifax, Northern Ireland is the UK’s best-performing country or area. There, the typical home costs £189,684, a 2.3% increase over the previous year.
The most recent government data indicates that almost one-third of home sales go to cash purchasers. Since the building society’s data is derived from its mortgage lending, individuals who buy properties with cash or through buy-to-let transactions are not included in the statistics. The most recent government data indicates that almost one-third of home sales go to cash purchasers. Although the markets have speculated that interest rates have peaked, the Bank of England has cautioned against expectations of a rate drop in the near future.