Rising Interest put off despite another house price record

Rising Interest put off despite another house price record
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A growing number of analysts believe that the Bank of England will not hike interest rates next year. It is vital to look at this from an expert Estate Agent in London.

It was thought that the BoE’s monetary policy committee would agree to a hike due to rising inflation in the broader economy and to take some steam out of the property market.

Even though the latest Halifax index reported other high price numbers, it currently appears that many commentators anticipate an interest rate hike will be postponed until the New Year.

According to the most recent Halifax statistics, home prices have continued to grow over the previous month, with November setting a new average house price record of £272,992. Not only is this a new record price. But growth on a rolling quarterly basis has hit a fifteen-year high with a 3.4% increase.

Variation of Interest

“At this point, two months after the stamp duty holiday ended, it was thought that housing prices would finally fall.” The fact that prices are still growing shows that it was not the main factor while the plan affected property values. “The struggle for space looks to be ongoing, and when paired with current demand outweighing availability, prices continue to rise,” argues Karen Noye, mortgage specialist at wealth management company Quilter.

“Interest rates will be important in the coming months, and an increase would raise mortgage rates, which would certainly deter potential purchasers”. However, the new Omicron variety may put a wrench in the works of any significant adjustments planned by the Bank of England, implying that a rate hike is unlikely for the time being. While this is true, rock-bottom mortgage rates are likely to climb since an interest rate increase is still expected; it is only a matter of when.

“Those hoping for reduced pricing while waiting out the housing market boom will most likely have to wait a little longer”. Whether or not house prices begin to fall. The inevitable increase in mortgage rates will contribute to the unaffordability of homeownership.”

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According to Halifax, property prices increased 8.2 per cent compared to November of last year and 1.0 per cent compared to October of the previous year.

Quarterly home price inflation is currently at its highest level since 2006, at 3.4%. Being an Estate Agent in London has more pressure than it seems.

This is the seventh month in a row that average house prices have increased, with typical values up by about £13,000 since June. This is more than £20,000 since this time last year, says Russell Galley, managing director of Halifax.

More from Halifax

Those hoping for reduced pricing will most likely have to wait a little longer. They might be waiting out the housing market boom. Whether or not house prices begin to fall, the will be inevitable increase in mortgage rates. So, that will contribute to the unaffordability of homeownership.

According to Halifax, property prices increased 8.2 per cent compared to November of last year. They also increased 1.0 per cent compared to October of the previous year.

Quarterly home price inflation is currently at its highest level since 2006, at 3.4%.

This is the seventh month in a row that average house prices have increased. This happened with typical values up by about £13,000 since June and more than £20,000 since this time last year. This insight is provided by Russell Galley, managing director of Halifax.

The direct impact of a possible pandemic resurgence, we would not expect the current level to be sustained next year. This is the case for house price growth. House price-to-income ratios are already historically high. So, household budgets are only likely to come under more significant strain in the coming months.

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