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Home prices in the UK climbed once again this month, with the average property now costing GBP 299,862 after a 0.6 % monthly rise, the strongest since January. Annual growth reached 1.9 %, beating forecasts. Despite the increase, affordability remains a concern even as more mortgages are being approved. Regional variations were notable: prices slipped in London but surged by 8 % in Northern Ireland. The market appears to be holding up well despite looming tax-policy changes and rate-cut speculation.
The UK housing market recorded its most significant single-month rise since January when the average home price rose by 0.6 % to reach GBP 299,862. This followed a 0.3 % drop in the previous month. On a year-on-year basis, prices grew by 1.9 %, improving from a 1.3 % annual rise in the prior month and outperforming the 1.5 % predicted by analysts. Advertisement
According to Halifax, the number of new mortgages approved recently is the highest so far this year, indicating sustained buyer interest. However, Halifax's head of mortgages, Amanda Bryden, mentioned that many buyers still face affordability issues, citing that average fixed mortgage interest rates are around 4 %.
Regional differences were clear. In London, house prices fell 0.3 % compared with a year earlier, whereas Northern Ireland recorded around 8 % annual growth, the strongest in the UK.
This improvement comes as the market braces for forthcoming tax-policy announcements in the UK budget scheduled for 26 November. Analysts suggest the rise indicates the market has held up better than expected in the face of possible tax hikes. The Bank of England has kept interest rates at 4 %, and signs of a potential rate cut in December are being monitored as a factor that could further support prices.
In context, housing-market growth had been sluggish earlier this year, partly because of economic uncertainty and tax-related buyer hesitation. The latest data suggests a rebound in activity, even if growth remains modest compared with more buoyant periods.
Source Reuters
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