Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Thursday, 4 February 2016

UK house prices bolt to new high

According to Halifax.

Prices rose +1.7 per cent in the month, while the more reliable quarterly figure revealed price growth of +2.2 per cent. 

Average were up +9.7 per cent over the year - the fastest annualised growth since July 2014 - to a fresh high of £212,430.

Halifax noted that prices would likely rise further in 2016 due to...well, supply and demand being imbalanced, plainly enough.

With confidence strong buoyed by ultra-low rates and falling unemployment, home sales and mortgage approvals have picked up, but supply hit another record low, despite an uptick in new instructions from home sellers.


Update: following on from the Bank of England's inflation report, it seems unlikely that there will be any interest rate hikes in the UK in 2016 (possibly not even any in the cycle, who knows?).

At some point further macro-prudential tools will likely need to be deployed in order to cool the property market.