House prices have increased to its highest rate in almost a year, according to Halifax. The prices are rising at 3.7% per year, higher than wage growth which rose an annual 2.9% between May and July.
The UK’s largest mortgage provider also noted that the number of first-time buyers in the market has doubled since a record low in 2009 when the recession was at its peak. The average price of a UK home has also gone up to £229,958 in August this year.
Low unemployment rates and a slight increase in the rate of wage growth have helped households better manage their finances. This coupled with a low interest rate and a steady supply of new houses on the market are creating favorable conditions for buying.
These conditions are spread unevenly throughout the country. The real estate activity and prices in the south are at a standstill. On the contrary, its booming in the north. Real estate agents in Leeds commented on an increase in property sold this year compared to the last. They’ve also seen a significant increase in first-time buyers.
The house market in London has stalled as buyers wait to see if house prices will fall further. However, some are taking advantage of the lessening property value and purchasing now before the interest rates increase more.