Halifax HPI: House prices see biggest monthly rise since February

Michael Lloyd

December 6, 2019

House prices rose by 1% from October to November, the biggest monthly rise since February according to the Halifax House Price Index.

Prices in November saw a yearly increase of 2.1%, and in September to November 2019, house prices were up 0.2% from that of June to August.

Prices are now up by £3,904 since the start of the year.

Russell Galley, managing director, Halifax, said: “While a degree of uncertainty remains evident, it’s also clear that buyers and sellers are responding to factors such as improved mortgage affordability and the limited supply of available properties.

“It is these issues which we believe will continue to underpin the resilience evident in the market for most of 2019. Over the medium term we expect the emerging trend of modest gains to continue into next year.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “It might be a little surprising to see the biggest monthly rise in house prices since February but the end of year can see a spike in sales as people aim to be in their new home for Christmas.

“Mortgage rates are cheaper than ever, with lenders continuing to compete for business.

“Those who can’t compete on rock-bottom rates are offering tempting incentives such as no fees or free valuations, and loosening criteria.

“It is a good time to be a borrower – that is, if you can find a property that you wish to buy.”

Guy Harrington, chief executive of property lender Glenhawk, said that the 1% month-on-month growth is quite a result for the housing market because only 0.7% was forecasted.

He said: “This is a sign that the UK public are fed up with the political shenanigans.

“The General Election is going to be a catalyst of some sort, and with all signs pointing towards a majority Conservative government, we could be saying “au revoir” to the inertia that has characterised the market for far too long.”

Andrew Montlake, managing director of mortgage broker Coreco, said that the competitive mortgage market has been carrying the property market on its shoulders.

He added: “Mortgage rates are so low that despite the political noise people are getting on with their lives and moving home.

“A lot of people are locking in to ridiculously competitive 5-year fixed rate mortgages, which offer an instant hedge against the uncertainty of Brexit.

“The pragmatism in the market is being supported by the fact sellers have also become more realistic around asking prices.

“Politically the country is in chaos and yet within the property market there is a sense of calm.

“Traditionally, activity levels tend to drop in the weeks before a General Election but the urgency to get into a new home before Brexit is outweighing that.”

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