x
By using this website, you agree to our use of cookies to enhance your experience.

The property market has come "from hot to hyper" following figures from Halifax showing prices up 7.7% in a year and £2,000 in November alone.

The average property price now costs £174,910, after rising for the 10th successive month.

Halifax pinned the rise on strong demand, low interest rates, growing consumer confidence, lack of supply, and the twin impact of the Funding for Lending Scheme (FLS) and Help to Buy.

The housing market is well and truly alight, said Alexander Gosling, director of the online estate agents Housesimple.co.uk. "In some parts of Britain it has gone from hot to hyper."

Scrapping FLS will do little to dampen the fire, with Help to Buy ready to take up the slack, he said.

"Demand is outstripping supply in many areas and prices are responding accordingly. Help to Buy is being extended to more banks, and its impact on first-time buyers is trickling up through the housing chain.

“With mortgages cheap and more available than ever, buyers are being spurred on by a seductive blend of confidence that prices will rise and the fear that if they fail to pile in now they will be left behind."

But he said buyers and sellers must avoid getting carried away. "The assumption that house prices must inevitably continue to race upwards is as dangerously misguided as ever.”

James Hall, director of estate agent Fishneedwater, said: "The property market hit the ball out of the park yet again in November.

"Activity is strong at all levels, although first-time buyers are still providing a lot of critical momentum.

"While we are likely to see a slight drop off during December for the usual reasons, there is no sign that the market will let up in the first few months of next year.

"The last thing we need is an overheated property market and in certain areas of the UK, especially the capital, there is a risk that is happening.

"In the capital, there is an unprecedented urgency and this is reflected by the fact that gazumping is now a regular occurrence and properties are selling well over asking price in many areas. I've not seen anything like it."

Nicholas Ayre, managing director of homebuying agency Home Fusion, said house prices continue to rise mainly due to supply constraints.

"It is welcome news that private sector house build starts in England recentlyincreased to the highest level since 2008, however it will take 18 to 24 months between getting these properties out of the ground and for someone to move in."

Comments

Zero Deposit Zero Deposit Zero Deposit