Home costs at recent file excessive, says Halifax

UK home costs have hit one other file excessive with the typical property worth reaching £299,138, Halifax has stated.

The UK’s largest mortgage lender, a part of Lloyds Banking Group, stated property values recovered in January after seeing a slight dip in December.

The annual progress in costs slowed to three.0%, which is the weakest fee since July 2023, however Halifax stated the market was displaying “noteworthy” resilience.

Amanda Bryden, head of mortgages at Halifax, stated there was “sturdy demand for brand spanking new mortgages and progress in lending”, which is perhaps being pushed by first-time patrons making an attempt to finish offers earlier than a rise in stamp obligation in April.

Within the Finances in October final 12 months, Chancellor Rachel Reeves stated that lowered stamp obligation charges in England and Northern Eire would finish in April subsequent 12 months.

The adjustments will imply that home patrons will begin paying stamp obligation on properties over £125,000, as an alternative of over £250,000 for the time being.

First-time patrons at present pay no stamp obligation on properties as much as £425,000, however it will drop to £300,000 in April.

Jonathan Hopper, chief govt of Garrington Property Finders, stated: “The normal January bounce did not disappoint. After a number of property portals reported file Boxing Day site visitors and a shock leap within the variety of mortgages authorized in December, enterprise was brisk in a lot of the property market final month.”

Nevertheless, he thinks the recorded leap in costs at a nationwide degree is “misleading”.

“Look extra intently on the knowledge and it turns into clear that accelerating worth progress is way from common – the truth is it slowed in two-thirds of the UK’s nations and areas,” he stated.

London stays the costliest place within the UK to purchase a home, with the typical property there costing £548,288, up 2.8% from a 12 months earlier.

Properties in Northern Eire noticed the strongest annual worth rise of 5.9%, with a median property now at £205,473.

Home costs in Wales rose 3.6% in comparison with final 12 months, with property values averaging £227,397.

In England, the North East changed the North West because the area with the strongest annual worth progress, with values rising by 5.2% to £178,696.

Scotland noticed a decrease rise in home costs general, up 2.4%, with properties now costing a median of £210,690.

Halifax’s home worth knowledge is predicated by itself mortgage lending, which doesn’t embrace patrons who buy properties with money, or buy-to-let offers. Money patrons account for a couple of third of housing gross sales.