House price growth dips as UK housing value increases by £1.8 trillion in 10 years
The value of the UK's housing stock has jumped by £1.8 trillion in the past decade, research by Halifax showed today.
UK homes are now worth £5.1 trillion, a 53 per cent jump from £3.3 trillion in 2005. That's a £76,316 rise for each home in the UK.
The news came as Halifax reported annual house price growth of nine per cent in the three months to November, down from 9.7 per cent in October.
Prices fell 0.2 per cent between October and November, down from a one per cent increase between September and October.
Martin Ellis, Halifax's housing economist, an increasing imbalance between supply and demand had caused house prices to rise at a "robust pace" – "a situation that is unlikely to reverse significantly in the short term".
House prices are expected to spike over the next few months, as Buy-to-Let investors squeeze their purchases in before new rules on stamp duty come into effect.
With a rate hike now expected in late 2016, prices have also been pushed up by a rash of buyers seeking to have mortgages approved before interest rates increase.
Bank of England figures have shown the volume of mortgage approvals for house purchases increased 17 per cent in the year to October.
"Very low mortgage rates and strengthening wage growth, alongside the continued dearth of homes for sale, should ensure the upward pressure on prices remains strong," said Samuel Tombs, chief UK economist at Pantheon Macroeconomics.