House Prices Up Surprise.
Record High House Prices.
Halifax has released its latest house price index results for August 2017 with a surprise increase in the average home price in the UK to create a new record.
Yearly house price average growth = 2.6% pa (up from 2.1%pa in July).
In August alone, house prices rose by 1.1%, no doubt a higher than usual rise given recent falls in May and June.
The average house price in the UK now stands at £222,293 (up from £219,918 in July), a new record high.
Why the increase in house prices?
Mortgage approvals are up, perhaps there has been a little more relaxation by mortgage lenders on criteria. Why?
Because the UK now has its lowest unemployment rate for 42 years.
Future Property Prices?
Inflation is rising faster than wage growth, so we still may see slowdown and falls. That said, if there are labour shortages as less EU nationals are coming to the UK, then wages will need to rise to attract staff. This will have a knock on effect on house prices in the long term. Do not expect more than 3% growth over the coming year. Lower property price rises than normal but still on their way up.