Property prices edge higher in November, 4% ahead of last year
Property prices edged further higher last month according to the index. House prices grew 0.5% between October and November according to Halifax, meaning the average asking price now stands at £226,821.
The small amount of growth last month means that prices are now 3.9% higher than they were a year ago.
The government has made it clear that boosting affordability and house building rates are a key focus for them from this year’s Autumn Budget, for first-time buyers in particular, with the Chancellor announcing that stamp duty will be cut on properties up to £300,000 and additional relief for those priced up to £500,000.
However, the wider impact on the property market as a whole from this move is expected by some experts to be small. This is likely due to the fact that, in most regions, first-time buyers already pay little or no stamp duty as average asking prices are below the £125,000 threshold.
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Nationwide’s chief economist, Robert Gardner said: “The potential savings are more substantial for borrowers where house prices are higher, especially in London and the South East.”
Most likely to affect prices in the months ahead is the move from the government to focus on house building to help increase affordability through reducing the currently high demand vs supply.
“The picture improves significantly if we add in new dwellings that have been created by converting larger homes into more units and those created by a change of use, such as offices transformed into flats.
“Indeed, on this broader measure, the number of dwellings being created each year is now only three percent lower than the levels recorded in 2007 (even after accounting for demolitions).”