Annual house prices have risen by 2.1% over the past year according to Halifax’s latest house price index.
The index revealed that the average price of a house in November 2019 stood at £234,625, 2.1% higher than in the same month a year earlier. Despite the Brexit uncertainty throughout the past few years the property market has continued to stay strong and the latest figures in the index show that the period of uncertainty may finally be coming to an end.
The index also showed a 1% increase in house prices from the previous month – the largest increase since February. This is somewhat of a pleasant surprise in the property market after two months of decreases in house prices. November’s forecast predicted yet another decrease, this time by 0.7%, however the property market seems to have drastically improved. The impressive increase in November also improved the quarterly change, with the latest quarter’s (September to November) house prices coming in at 0.2% higher than they did in the preceding three months (June to August).
This improvement in the property market is likely down to the recent Brexit extension and upcoming general election. It would seem the end is near regarding the Brexit debate and the years of uncertainty and speculation will finally come to an end. The promise of a Brexit resolution seems to have already triggered an increase in activity in the property market, and the upward trajectory is expected to continue as the day itself approaches. A recent report found that around 55% of UK property investors have paused any investment plans over the last six months as they await the outcome of Brexit and it’s estimated that 52% of investors are monitoring properties they are looking to purchase, waiting to see if there is any price fluctuation in the build up to January 31st.
Halifax managing director Russell Galley says: “Average house prices rebounded somewhat in November, with annual growth of 2.1 per cent being driven by the biggest monthly rise since February, following two months of modest falls.
“Prices are now up by £3,904 since the start of the year. 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.
Galley adds: “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.”
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