Halifax UK house price growth hits 15-year high in November

According to the monthly figures from the lender, part of Lloyds Banking Group’s increase in house prices is seen. It signifies that in the three months to the end of November house prices rose 3.4%, the quickest boost since late 2006, and are 8.2% greater than a year earlier.

On Tuesday Halifax said that over the past three months in 15 years British house prices thrived at the fastest pace, indicating a lack of homes, a strong job market, and low borrowing costs.

According to the monthly figures from the lender which is a part of Lloyds Banking Group’s increase in house prices have been noticed. It signifies that in the three months to the end of November house prices rose 3.4%, the quickest increase since late 2006. Also, they are 8.2% greater than a year earlier.

Managing director of Halifax, Russell Galley said, “The performance of the market continues to be underpinned by a shortage of available properties, a strong labour market, and keen competition amongst mortgage providers keeping rates close to historic lows.”

In the coming months, the Bank of England aims to start lifting interest from their record low 0.1%.

Although the emergence of the Omicron variant of coronavirus means markets are divided over whether this will occur at next week’s policy meeting.

In November alone house prices rose 1.0%, a similar rise as in October, Halifax said.

British house prices have surged so strongly through most of the COVID-19 pandemic, in line with various other large economies. This indicates an increased demand for space to work from home and – in Britain’s case – temporary tax incentives to move house.

The last month when the tax break applied, house prices in September were 11.8% higher than a year before, the most recent official data showed.

But Halifax said there were indications that the shift in demand towards larger, less central housing was offsetting, as prices for apartments rose rapidly than those for independent houses.

Galley said, “We would not expect the current level of house price growth to be sustained next year given that house price to income ratios is already historically high, and household budgets are only likely to come under greater pressure in the coming months.”