UK house prices “close to pre-financial crisis levels”, Halifax

14 Apr 2021

House prices in Britain have reached an all-time high, albeit at a slower rate than last year, says the Halifax house price index published on Wednesday.

In regard to housing affordability, the lender said it was “close to pre-financial crisis levels”, with prices still at historically high levels, averaging £252,765.

Despite a slowdown in its upward trajectory in Q1 this year, inflation has increased 5.7%, with the standard house price last year at £252,030.

A City AM report shows that the 5.7% rise was a fall of 7%, a five-year high, according to the Halifax house price index.

In the first quarter, prices rose just 0.3%, less than the 2.5% rise in Q4 last year.

In addition, the London property market revealed slower gains in house prices at the beginning of the year, the “strongest” since the Brexit referendum back in 2016.

The average house price in Greater London was £505,359, a 2.5% decline compared to Q4 2020, but has moved up 2.1% over last year.

Furthermore, demand for bigger properties continued on from last year, with existing properties impacted by mounting inflation 6.2% more than new builds.

According to the latest Bank of England figures, the number of approved mortgages declined in February by 9.9% to 87,669. Year-on-year, the February reading was 19.5% high than the same month last year.

Moreover, the latest RICS Residential Market Survey revealed sales market activity rallied over the month, with enquiries, sales and new instructions improving over February.