Thursday, November 7, 2024

House prices hit record high, says Halifax

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Commenting on the new record high, Amanda Bryden, head of mortgages at Halifax, said: “That house prices have reached these heights again in the current economic climate may come as a surprise to many, but perhaps more noteworthy is that they didn’t fall very far in the first place.

“Despite the headwind of higher interest rates, house prices have mostly levelled off over the past two and a half years, recording a +0.2% increase overall.”

She added that Budget announcements such as higher stamp duty for second home buyers and a return to previous thresholds for first-time buyers could hit demand for properties.

However, she added that market activity had been improving, with the number of new mortgages agreed recently hitting the highest level for two years.

At the moment, you do not pay stamp duty when buying a property worth less than £250,000. This was doubled from £125,000 under Liz Truss’ mini-Budget in September 2022.

If you’re a first time buyer you do not pay stamp duty on homes worth up to £425,000 after this threshold was raised from £300,000.

These higher thresholds will revert to previous levels in March 2025.

David Stirling, an independent financial adviser at Mint Mortgages & Protection, said: “Estate agents are busy even in a higher interest rate environment and mortgage applications and approvals are still strong.”

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