The average house now costs £240,054 | moneyfacts.co.uk
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Derin Clark

Derin Clark

Online Reporter
Published: 07/02/2020

The latest Halifax House Price Index figures show that the average house price in the UK now stands at £240,054.

According to the figures, in January house prices saw a 0.4% month-on-month rise, while year-on-year they have risen by 4.1%. While this is good news for homeowners, Russell Galley, managing director at Halifax, warns consumers that it is too early to say if this upward trend will increase. He said: “A number of important market indicators continue to show signs of improvement. We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy. However, it’s too early to say if a corner has been turned. The recent positive figures may actually represent activity that would ordinarily have been expected to take place last year, but was delayed by economic uncertainty. So, while housing market activity has undoubtedly increased over recent months, the extent to which this persists will be driven by housing policy, the wider political environment and trends in the economy.

“Looking ahead, we still expect a moderate rate of house price growth over the course of the year. Demand is likely to continue to exceed the supply of properties for sale across the UK, with the subdued pace of new building also adding to upwards price pressure. The environment for mortgage affordability should stay largely favourable. However, with the growth in rental costs accelerating, many first-time buyers will continue to face a significant challenge in raising necessary deposits.”

Government proposes new homes price cut

To help improve first-time buyer affordability, the Government has today announced plans to cut the cost of some houses by a third. In these proposals, the First Homes scheme will mean a discount is locked into the property to help improve affordability for first-time buyers in years to come. The scheme is currently only being proposed for England and, according to the Government, will lower deposit and mortgage requirements for local first-time buyers.

This move is designed to help those who want to stay in their local area, but who might be priced out of their region due to rising house prices. In addition to this, under the proposals, veterans will be prioritised, and councils will be able to use the scheme for front-line workers in their areas, such as police, nurses, prison officers and teachers.

Commenting on the proposals, Housing Secretary Rt. Hon Robert Kenrick MP, said: “First Homes will be life-changing for people all over the country looking to buy their first home.
“I know that many who are seeking to buy their own home in their local areas have been forced out due to rising prices. A proportion of new homes will be made available at a 30% market discount rate – turning the dial on the dream of homeownership.

“The discount will be passed on with the sale of the property to future first-time buyers, helping thousands more people in years to come and ensuring local communities can stick together.”

First-time buyer mortgages

First-time buyers are benefiting from some competitively low mortgage rates at the moment. To see all the available first-time buyer mortgages currently available visit our first-time buyer mortgage chart.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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