UK house prices have risen at the fastest rate in 15 years in the past three months in Halifax.

House prices rose 3.4% in the three months to the end of November, the largest increase since late 2006, and are 8.2% higher than a year earlier.

The average UK house price hit an all-time high of £ 272,992 in November, the mortgage lender said.

However, he said the pace of growth is unlikely to continue next year as household finances are under pressure.

Shortage of goods

UK house prices have been rising in the past five months, Halifax said.

“A lack of available real estate, a strong job market, and fierce competition among mortgage providers have kept interest rates near all-time lows,” said Russell Galley, Halifax CEO.

A coronavirus pandemic has put pressure on the housing market, with blank stamp taxes fueling demand early, although there have been fewer increases since the tax break ended in late September, he explains.

Borrowing costs are low because of the low-interest rates, which makes mortgages more attractive, and the job market is booming.

There has been a so-called “space race” as people spent more time at home looking for bigger houses during the pandemic, although there are signs that this is slowing down as the pandemic progresses, with homes becoming more common again.

Finances under pressure

However, the lender added that the rapid pace of house price inflation is unlikely to continue over the next year.

Interest rates are expected to rise to fight inflation, although the Omicron version of the coronavirus is questionable when it will.

But there are factors outside of the pandemic that show a slower pace in house price inflation, Halifax.

Housing has never been cheaper than ever, and “family budgets are unlikely to come under additional pressure in the coming months.”

Danni Hewson, the financial analyst at AJ Bell, said, “The lockdowns that forced many of us to spend weeks in our homes forced many of us to rethink what we wanted out of those four walls.

“Mix the holidays with the stamp duty and get an ordinance to set the property market on fire.”

However, he said the uncertainty about the Omicron version could “slow the market down and there is no doubt that the kind of price hikes we’ve seen over the past 18 months is unsustainable”.

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