London, Friday, 9 July 2022
Halifax reports that despite forecasts that the rising cost of living in the UK would reduce demand, house prices reached a new high in June.
The mortgage lender reported that the average home price increased by 1.8 percent to £294,845 in June, the largest monthly gain since 2007.
Halifax claimed that in addition to a move toward individuals purchasing larger, detached homes, a dearth of available properties for sale was driving up prices. But it anticipates a slowdown in price growth.
According to Halifax, the property market has so far largely escaped the effects of the growing cost of living.
This is in part because those with lower incomes, who ordinarily are less active in buying and selling homes, are currently feeling the effects of the rise in the cost of living the most. Contrarily, higher earners may be able to utilise more money accumulated during the pandemic, according to Russell Galley, managing director of Halifax.
According to Halifax, the annual increase in housing prices was 13%, which was the highest rate since late 2004.
(Report by: The Decision Maker – Real Estate editors)