The latest figures from the Halifax show that UK house prices increased at a record-breaking rate in 2015.
Figures published in Halifax’s House Price Index have shown that property prices increased by 9.5% in Q4 2015, when compared to Q4 2014. This is the highest annual price increase in 9 years.
According to the Halifax, the average UK house price is now £208,286.
• Q4 property prices in 2015 were 1.6% higher than the previous quarter
• Property prices in Q4 2015 were 9.5% higher than Q4 2014
• Between November and December property prices increased by 1.7%
• Newham in London recorded the largest house price rises (up 22%)
• Home sales increased by 5.2% during September to November 2015 when compared to the same period of time in 2014
• Mortgage approval continues to increase
• Supply is at an all-time low
Commenting, Martin Ellis, Halifax housing economist, said: “House prices in the three months to December were 1.6% higher than in the previous three months. This was the second successive month that this measure has been below 2.0%, indicating a possible slight softening in the underlying rate of price growth.
“There remains, however, a substantial gap between demand and supply with the latest figures showing a further decline in the number of properties available for sale. This situation is unlikely to change significantly in the short-term, resulting in continuing upward pressure on prices.”
The 9.5% price increase recorded by Halifax was a lot higher than the lender originally anticipated. It was thought that property prices would increase by 4% but prices increased over double this prediction.
However, this record-breaking price increase is much higher than the Nationwide measure. Nationwide reported that property prices increased by 4.5% in 2015 – half of what was recorded by Halifax.
Related article: Experience Invest reviews UK house price rises.