December house prices jump 4% as mortgage approvals rise

The latest House Price Index data from Halifax reports a 4% increase in December’s house prices from the previous year.

Over the course of 2019, the Halifax Index shows the average house price rose by £9,136 to reach £238,963, with the average property price in December leaping up £4,000. At 1.7% this was the biggest monthly increase of 2019, although November transactions were approximately 1.9% higher than the same time the previous year.

Figures from the Bank of England show that 64,994 mortgages were approved to finance house purchases in November, up 0.5% month-on-month and 1.4% year-on-year.

According to Mark Harris, chief executive of mortgage broker SPF Private Clients, the December surge was due to several factors including the Conservative election win encouraging buyers and sellers to get on with their transactions, and lenders concentrating on year-end and offering cut-price deals.

He said, “The signs are encouraging for 2020 with lenders keen to lend and plenty of money available to do so. It is a good time to be a borrower…”

Modest increases expected for 2020

The figures from Halifax are based on the lender’s own mortgage approvals. By comparison, Nationwide Building Society reported that its index shows house prices rising a more cautious 1.4% last year, but they too report the average property value up in excess of £4,000 to £215,282.

Halifax is expecting to see a modest increase in house prices in 2020, forecasting between 1% and 3%, as the shortage of homes for sale and low levels of house building limit supply.

Russell Galley, Halifax managing director, said: “Looking ahead, we expect uncertainty in the economy to ease somewhat in 2020, which should see transaction volumes increase and further price growth made possible by an improvement in households’ real incomes.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT