UK property prices reach record levels

September 19, 2017 by Brendan O'Neill

Property Market

The average price of a home in the UK has reached an all-time high, following an increase of 1.1% in August, according to the Halifax.

The average UK property is now £222,293, which is higher than last December’s peak. In July 2017, an annual increase of 2.1% was recorded, which escalated in August to 2.6% higher than last year. However, this level is still only around a quarter of the increases in March 2016, when prices rose by 10%.

The managing director of the Halifax Community Bank, Russell Galley, said that the recent increased number of mortgage approvals could indicate that the property market may be experiencing buoyancy, especially as the rate of unemployment has fallen to a 42-year low. He added that growth of wages was still behind consumer prices, which would make it difficult for some buyers to afford to buy a home, as household finances may be stretched.

According to a mortgage broker, lenders continue to compete for custom and will continue to cut penalties and rates during the autumn. However, another expert believes that property prices are not likely to rise more than 2% during 2017 and possibly during 2018. The chief economic adviser of EY ITEM Club, Howard Archer, added that as consumers remain cautious around major financial transactions, and wage growth continues to fall behind inflation, activity in the property market may be weak. CeMAP qualified mortgage advisors may find that their services are in demand, as potential buyers search for some of the best mortgage deals available.