Dispelling the usual belief that the housing market is slowing down, UK house prices rise by 10 percent–Halifax.
British bank chain Halifax recently released a report highlighting the biggest change in housing trends in 7 years as UK house prices rise by 10 percent this year. At a time when the market had just reached the threshold of a financial crisis, this has been the largest annual increase in prices since September 2007.
As per the report, this annual rise was a result of a monthly spike of 1.4 percent in housing cost in July, before which there was a 0.4 percent fall in June.
According to Bank of England’s rules, with effect from April, mortgage lenders are required to conduct tighter credit checks on fresh borrowers. This was introduced in a bid to curb rising household debt levels, limiting how much home-buyers could borrow.
“While supply remains low, housing demand continues to be supported by a continuing economic recovery, growth in employment, improving consumer confidence and low mortgage rates,” said Stephen Noakes, Director-Mortgages, Halifax.
Halifax also stated in its report that the rise in house prices has mostly been concentrated in London, at 15.9 percent on the year, compared to an 8.8 percent rise across the UK, as seen in the second quarter of 2014.
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