House prices hit record high, says Halifax

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House prices have hit a record high despite the Bank of England’s first rate rise in a decade last week, lender Halifax said on Tuesday.

Its latest index showed a 0.3% increase last month, taking the average to £225,826, the highest in the benchmark’s 34-year history.

Prices are 4.5% ahead of a year earlier, the fastest since February.

Russell Galley, the managing director of Halifax Community Bank, said the rate increase to 0.5% would not be “a barrier to buying a house”.

He added: “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.”

The Halifax’s more upbeat survey is at odds with signals from Nationwide and Rightmove, as well as a tailing-off of mortgage approvals over last month.

EY Item Club economist Howard Archer said: “Housing market activity has picked up overall from the lows seen around mid-2017 but is still hardly buoyant.”

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Written by: Houseladder