View more on these topics

House prices rise 9.5% year-on-year

House-Home-Property-Ladder-Mortgage-700x450.jpg

UK house prices in the fourth quarter of 2015 were 9.5 per cent higher than the same period in 2014, according to Halifax data.

Prices for October to December 2015 were 1.6 per cent higher than in the preceding three months.

The average UK house now costs £208,286.

Halifax housing economist Martin Ellis says that the three months ending December 2015 was the second successive quarter that house price growth was below 2 per cent.

This could herald a slight softening in the underlying rate of price growth, he adds.

“There remains, however, a substantial gap between demand and supply with the latest figures showing a further decline in the number of properties available for sale,” he says.

“This situation is unlikely to change significantly in the short-term, resulting in continuing upward pressure on prices.”

Dragonfly Property Finance managing director Mark Posniak says: “With supply as weak as demand is strong, it’s same old, same old on the house price front.

“Looking into 2016, it’s hard to see anything other than a continuation of the current trend of steadily rising prices, especially with interest rate rises in the near future unlikely.”

SPF Private Clients chief executive Mark Harris says that many lenders began January by lowering rates, including HSBC, Nationwide, Skipton and Virgin Money.

He adds: “While several lenders hiked their mortgage rates before Christmas, leading to fears that the cheapest deals are behind us, this was more to do with slowing down business over the festive period.

“The good news for borrowers is that lenders are likely to price aggressively in coming weeks in order to get off to a fast start.”

Recommended

1

Countrywide hires corporate relationship director

Countrywide has appointed Scott Burman as corporate relationship director. Burman joined the new firm yesterday from Lloyds Banking Group, where he was national housing development manager. He will join Sally Young as one of two corporate relationship directors in Countrywide’s corporate business team. Burman says: “I am delighted to be joining Countrywide at the start of […]

Home-House-Monopoly-Money-Property-700x450.jpg
10

‘Banned’ self-cert loans set for return

A new lender is looking to bring back self-certified mortgages at the start of next year. The FCA banned so-called ‘liar loans’ in the Mortgage Market Review. However, Graeme Wingate, the founder of unsecured lender Quick Loans, is looking to bypass UK regulation by setting up in an Eastern European country, the identity of which […]

Nationwide CEO makes New Year Honours list

Nationwide chief executive Graham Beale and former Monetary Policy Committee member David Miles are among the financial services names recognised in this year’s New Year Honours list. Beale, who had been Nationwide’s chief since 2007, has been handed a CBE for his services to the financial services sector. Miles had two terms on the Bank […]

Tracey McDermott FCA 700x450.jpg

Tracey McDermott tipped to be new FCA boss

Acting FCA chief executive Tracey McDermott is a leading candidate to replace Martin Wheatley at the regulator’s helm, according to the Sunday Times. McDermott took on the role following Wheatley’s departure in September, and an appointment is expected in the coming weeks. However, the Sunday Times reports that McDermott has already impressed City businesses having […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • Chris Hulme 7th January 2016 at 2:58 pm

    Even the 200,000 homes per year isn’t going to ease this issue. Assuming there are enough bricks, builders and other trades people to build all these homes, homeowners aren’t getting phone lines or internet for months on end as Openreach don’t have the engineers to install lines and connect homes at the current rate let alone the increases planned. Interesting times ahead….