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TODAY'S OTHER NEWS

You guessed it - ANOTHER house price record as market stays hot

Annual house price growth increased to 8.1 per cent in October according to the Halifax. 

The average UK property price is now a record £270,027 after monthly growth of 0.9 per cent.

All regions are in positive territory but London remains by far the weakest performing area with annual inflation of just 0.8 per cent - its lowest for over 18 months. 

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Wales remains the strongest performing nation or region with annual house price inflation of 12.9 per cent, while prices also continue to rise in Scotland with the average property now up 8.6 per cent year-on-year.

In England, the North West has returned to being the strongest performing region, increasing 10.4 per cent annually.

Russell Galley, managing director of Halifax, says: “First-time buyers, supported by parental deposits, improved mortgage access and low borrowing costs, have also helped to drive price growth in recent months. 

“First-time buyer annual house price inflation (9.2 per cent) is now at a five-month high, and has pushed ahead of the equivalent measure for homemovers (8.1 per cent).

“More generally the performance of the economy continues to provide a benign backdrop to housing market activity. The labour market has outperformed expectations through to the end of furlough, with the number of vacancies high and rising relative to the numbers of unemployed.

“With the Bank of England expected to react to building inflation risks by raising rates as soon as next month, and further such rises predicted over the next 12 months, we do expect house buying demand to cool in the months ahead as borrowing costs increase. That said, borrowing costs will still be low by historical standards, and raising a deposit is likely to remain the primary obstacle for many. The impact on property prices may also be tempered by the continued limited supply of properties available on the market.”

Responding to the figures Jeremy Leaf, north London estate agent and a former RICS residential chairman: "There is still plenty of life left in the market, even though buyers and sellers can no longer take advantage of government support schemes.

"However, they can still benefit from record-low mortgage rates and many, particularly those entering the market for the first time, must have breathed a sigh of relief yesterday when interest rates remained unchanged. This is only likely to prove to be a temporary reprieve as a rate rise seems inevitable.

"Looking forward, we expect not much change with more demand for houses than flats, masking larger differences in percentage changes."

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