The average cost of a house in the UK rose at its fastest year-on-year rate for over four years last month, according to the latest figures published by Halifax, but the lender does not expect this to continue.
These figures from Halifax show that the average UK house price during October rose above the £250,000 mark, which is the first time this has happened and represents an increase of 7.5% in comparison with the same time last year. It is also the most rapid annual growth in prices that the market has witnessed since June of 2016.
That this has happened despite COVID-19 causing the worst recession in memory is down to the government’s decision to raise the threshold above which homebuyers have to pay stamp duty to £500,000 until next spring. This, plus the lockdown leading those who can afford it to look for homes with greater space, has driven demand in the property market and boosted prices.
However, with England going into a second lockdown and further recession, Halifax has stated that it expects price rises to tail off. The 0.3% September to October rise was the lowest since changes to stamp duty came into force, and the Managing Director of Halifax, Russell Galley, stated that a slump in the market was not something that could be avoided forever, as the country continues to battle against COVID-19.
A drop in house prices could, however, make it easier for advisors with CeMAP training to find a deal to suit their clients.
