UK House prices hit record £294,260, Halifax reports

House prices hit a record of £294,260 for the average UK property as the price tag saw an 11.5% annual rise, according to Halifax.

The cost of a home grew 0.4% month-on-month, exceeding the fall in July but still coming in below the 0.9% climb in July.

Halifax noted a gradual decline in house growth, after reaching a peak of 12.5% in June.

Meanwhile, London properties reached their highest annual price growth in six years at 8.8%, with a record cost of £554,718.

However, analysts warned rising interest rates and the cost of living crisis were snapping at the housing market’s heels, with the macroeconomic uncertainty primed to throw cold water on the red-hot sector.

“It looks like everything in the property market is rosy. But this reflects the market two or three months ago, because of the lag between sales being agreed and completions, and in the intervening months, the world has started to look a bit different,” said Hargreaves Lansdown senior personal finance analyst Sarah Coles.

“Back in May, when interest rates were at 1%, talk of recession was much more subdued and while we had seen the energy price cap rise in April, future rises weren’t at the forefront of people’s minds. We had seen demand start to come off the boil, but the RICS report at the time highlighted that prices were still being driven up by a shortage of properties on the market.”

“Now the cost-of-living crisis has hit home, and while we may not be forced to face the full impact of rises in energy prices, we’re still having to cope with rampant inflation across the board. At a time of rising rates and higher house prices, this is going to push property out of reach for desperate buyers.”

More articles ―