UK House Price Inflation Highest Since 2004: Halifax

Economy

UK house prices rose at the fastest annual pace since late 2004 in June, survey data from the Llyods Bank subsidiary Halifax showed Thursday.

The house price index climbed 13.0 percent year-over-year in June, faster than the 10.7 percent rise in May.

The latest annual price increase was the fastest since late 2004, Halifax said.

On a monthly basis, house prices grew 1.8 percent in June, following a 1.2 percent gain in the prior month.

Further, this was the twelfth successive monthly increase and the pace of growth was the strongest since early 2007.

The average house price set a new record high of GBP 294,845 versus GBP 289,666 in the previous month.

Average property values have now risen by GBP 18,849 or 6.8 percent so far this year, Halifax said.

Among regions, Northern Ireland again logged the sharpest annual increase in house prices at 15.2 percent. Prices in Wales and the South West also increased significantly.

“The supply-demand imbalance continues to be the reason house prices are rising so sharply,” Russell Galley, Halifax managing director, said.

“Demand is still strong – though activity levels have slowed to be in line with pre-Covid averages – while the stock of available properties for sale remains extremely low.”

Looking ahead, the housing market is set to be negatively impacted in the future as inflation and higher interest rates increase pressure on household budgets, Halifax said.

“”So while it may come later than previously anticipated, a slowing of house price growth should still be expected
in the months ahead,” Galley added.

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