First-time buyers (FTBs) and home movers should consider booking an appointment to talk to a mortgage advisor in Liverpool about their options, after it was revealed that monthly house price growth has reached the highest level for six months.
Halifax’s latest House Price Index reported it was 1.4 per cent in March 2022, while the annual increase was 11 per cent.
Consequently, average values have risen from £254,640 to £282,753 over the 12 months, a growth of more than £28,000.
Commenting on the figures, managing director of Halifax Russell Galley stated the reason behind the growth is down to “limited supply and strong demand”.
He went on to say: “Although there is some recent evidence of more homes coming on to the market, the fundamental issue remains that too many buyers are chasing too few properties.”
Despite this, the Halifax spokesperson suggested the growing pressure on household finances and a potential rise in mortgage rates could lead to a “slowdown in house price inflation over the next year”.
According to the latest Bank of England mortgage figures, the outstanding value of residential loans had increased by 4.7 per cent between Q4 2020 and the same period in 2021. This suggests that homebuyer demand keeps growing, despite the rising house prices.
What’s more, the amount of money they are having to borrow from mortgage lenders is increasing, which reflects the fact that home values are increasing at a much faster rate than wages. Indeed, Mr Galley noted that houses rose by just slightly less than the average salary (£28,860) last year.