UK house prices explode at fastest pace since 2007: Halifax

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LONDON (Reuters) – British house prices are rising at the fastest pace since before the global financial crisis, mortgage lender Halifax said on Monday.

Home prices rose 0.5% in February month-on-month, Halifax said.

This took the average price of a house in Britain to 278,123 pounds ($367,511), up 10.8% from a year ago and marking the fastest annual growth rate since June 2007.

The housing market has been hot in Britain – and many other countries around the world – since the lifting of the first coronavirus lockdown in 2020, boosted by demand for larger properties as more and more people worked in residence.

The UK market was also boosted by a tax incentive offered by Finance Minister Rishi Sunak, which fully expired at the end of September, when a job support program also ended.

“Lack of supply continues to support rising house prices, with recent industry surveys showing a shortage of new properties listed, now a long-term trend,” Halifax chief executive Russell Galley said.

He added that there was reason to believe that house price growth would slow later this year, notably due to soaring inflation, tax hikes and rising interest rates. ‘interest.

“These factors are likely to weigh on buyer demand over the course of the year, with market activity likely returning to more normal levels and a slowdown in property price growth to be expected,” Galley said. . ($1 = 0.7568 pounds)

(Reporting by Andy Bruce; editing by James Davey)

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