House costs have risen for the third month in a row, in accordance with new figures from Halifax.
The financial institution mentioned the typical price of a UK house was £287,105 in December. The determine is up 1.1% from the month earlier than and can also be the best stage since March 2023.
Halifax’s director of mortgages, Kim Kinnaird, mentioned the market additionally beat expectations in 2023, rising by 1.7% on an annual foundation.
However, this differs from evaluation by different lenders. An identical report by Nationwide final week reported that common costs fell by 1.8% over the course of the 12 months, with no change month-on-month.
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Ms Kinnaird mentioned Halifax’s figures, based mostly on Lloyds Banking Group mortgage lending, confirmed that the typical property worth was now £4,800 greater than it was in December 2022.
She added: “While it’s encouraging that we saw growth in the last three months of the year, this was preceded with property price falls for six consecutive months between April and September.”
The financial institution additionally cautioned that current progress was possible pushed by a scarcity of properties available on the market, quite than by the energy of purchaser demand.
But Ms Kinnaird added: “With mortgage rates continuing to ease, we may see an increase in confidence from buyers over the coming months.”
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Halifax additionally mentioned home costs might fall by between 2% and 4% in 2024 however mentioned there was excessive uncertainty over its forecast “given the current economic climate”.
It comes after a number of excessive road names lowered their charges earlier this week, together with Halifax and HSBC, with consultants predicting different lenders will quickly comply with go well with.
Imogen Pattison, an assistant economist at Capital Economics, mentioned Halifax’s figures “confirm that falls in mortgage rates are translating into renewed increases in house prices”, with rises anticipated to proceed within the first quarter.
She added year-on-year home worth progress might enhance by 3% within the third quarter, in distinction to Halifax’s forecast of a fall.
Alice Haine, an analyst at Bestinvest, mentioned: “While house buying activity was sluggish in the second half of 2023 as many movers put their buying and selling plans on pause while they waited for conditions to improve, the new year has delivered fresh optimism for the year ahead.
“With inflation on the retreat and mortgage charges on the decline from their summer time 2023 highs amid hopes the Bank of England (BoE) will push forward with charge cuts this 12 months, confidence seems to have returned to the market.”
The BoE is anticipated to chop rates of interest later this 12 months following current easing within the charge of inflation.
Interest charges are at present at a 15-year-high of 5.25% after being held regular 3 times in a row.
Source: information.sky.com”