Average home now costs £291,000; a £3,900 increase on December
UK house prices increased 2.5% in the year to January, which is the largest increase since January last year, as lower mortgage rates and reducing inflationary pressures brought increased buyer and seller confidence, Halifax has said.
January saw the fourth consecutive monthly increase in house prices, with a 1.3% rise on December, said the UK’s biggest mortgage lender.
The average home now costs £291,000; a £3,900 increase on December.
"Increased confidence among buyers and sellers"
Kim Kinnaird, the director at Halifax Mortgages, said: “The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary pressures and a still-resilient labour market has contributed to increased confidence among buyers and sellers.
“This has resulted in a positive start to 2024’s housing market.”
However, Halifax said that while activity and prices had risen recently, interest rates remain elevated compared with historic lows witnessed in recent years, and demand continued to outstrip supply.
Kim Kinnaird said: “Looking ahead, affordability challenges are likely to remain and further modest falls should not be ruled out, against a backdrop of broader uncertainty in the economic environment.”
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