Despite the average cost of houses across the UK hitting an all-time high, monthly home sales are still exceeding 100,000.
A report by Halifax has revealed that house prices in the UK have seen a 2.8% increase since January, with the average price of a house now standing at £225,826 – the highest on record.
Prices in Q3 this year were 2.3% higher than Q2 results, the fastest price growth seen quarter-on-quarter since January.
Year-on-year results showed a 4.5% increase from October 2016 to October 2017.
Russell Galley, managing director at Halifax Community Bank, said: “The annual rate of growth has continued to rise for the third month in succession, rising from 4.0% in September to 4.5% in October.”
“The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, continues to support house prices and is likely to do so over the coming months,” he added.
Although Galley acknowledged that pressure on household finances, as well as issues around affordability, could affect buyer demand, Halifax doesn’t envisage the recent Bank of England base rate hike affecting people’s ability to buy.
In spite of the steady price hike, monthly home sales across the UK have been sustained above 100,000 throughout the year. The three months to September saw the number of house sales recorded at 6% higher than those of the same period a year earlier.