The UK average home price has soared to an all-time high of £ 270,000 as prices defied expectations of a slowdown after the stamp tax break ended.
Halifax’s house price index rose 8.1 percent in October compared to the same month last year, accelerated from 7.4 percent in the previous month and marked the fastest pace since June.
The surge pushed the average home price above £ 270,000 for the first time on record.
The Halifax Index comes two days after the Nationwide report found the average house price topped £ 250,000 for the first time in October. Both indices are based on mortgages they have -proved with differences based on their customers’ shopping cart.
“One of the main drivers of activity in the housing market over the past 18 months has been the race for space, with buyers looking for larger properties, often further from urban centers,” said Russell Galley, Halifax managing director.
He added that first-time buyers, supported by parenting deposits, improved mortgage access and low borrowing costs, also contributed to price growth.
The UK’s economic performance, with a strong job market and a record number of job vacancies, provides “a good backdrop for property market activity,” said Galley.
London remained by far the UK’s weakest region, with annual inflation of just 0.8 percent, the lowest year-on-year price increase since February 2020. The c -ital’s underperformance largely reflects subdued demand, as increased homeworking meant that many were able to move to less crowded places.
In contrast, Wales was the top performing nation or region with annual house price inflation of 12.9 percent.
However, Galley expects real estate demand to “cool” in the coming months as borrowing costs rise after the Bank of England’s expected rate hike in December.