According to the latest Halifax House Price Index, UK house prices have increased by +2.8% on the last quarter, up nearly +10% on this time last year.
Founder and CEO of eMoov.co.uk, Russell Quirk, commented:
“The continued rise in house prices across the UK won’t come as a surprise to many. The nation are currently experiencing one of the most comfortable economic periods in quite some time, with interest rates at a record low and looking to stay that way until next year at least.
There is no doubt that the main driving factors behind this uplift are the abundance of more affordable mortgage products on the market, as well as the continuous elephant in the room of a general lack of housing in Britain, affordable or otherwise, due to inventory levels hitting an all time low.
Although this might make good reading for many homeowners who are due to benefit from an increase in the value of their property, we as a nation should learn from previous property lessons and proceed with caution.
Yes mortgage costs are low at present, but this won’t be the case forever. I think a large number of the British public scrambling to secure mortgages now, coupled with a severe lack of stock on the market, is a dangerous fuel to be driving the property market on.
UK buyers could be tempted to borrow more than they would in normal circumstances, in order to secure a property in a market where it is becoming increasingly difficult. Should interest rates jump up, they could find themselves in a difficult situation financially.”