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UK House Prices on the Rise


UK House Prices on the Rise

UK house prices have gone up for the first time in eight months. This data comes from Halifax, a mortgage lender, showing a 1.7% increase in December compared to 2022, when the housing market faced challenges due to the "mini-budget" crisis.


The housing market has been through a bit of a bumpy ride lately, dealing with higher borrowing costs and economic uncertainties. But now, the house prices have not only stabilised but increased by 1.1% from November.


During the COVID-19 pandemic, there was a lot of interest in buying homes. However, when the Bank of England raised interest rates to control inflation, demand took a hit. Fortunately, in recent weeks, mortgage rates have dropped, bringing buyers back into the market. In November, there was a significant increase in approved mortgages, the biggest since June 2023.


According to Kim Kinnaird, Director at Halifax Mortgages, the rise in prices in December could be because there aren't enough homes for sale. She also highlights the impact of falling mortgage rates, suggesting that buyers might feel more confident in early 2024. However, she points out that the future of house prices is uncertain, with a possible decline of -2% to -4% in the coming year.


Imogen Pattison, an economist at Capital Economics, explains that the increase in prices for the entire year was influenced by a 1.4% monthly fall in December 2022 during the mini-budget crisis. Capital Economics has adjusted its forecast, now expecting a 3% annual increase in British house prices in the last quarter of 2024, a big change from the earlier prediction of a 1.5% fall.


The recent developments, coupled with the fall in mortgage rates, may pave the way for increased engagement in bridging finance, offering flexible and swift solutions to those navigating the evolving real estate landscape.


Source: Reuters

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