United Kingdom Property News

House prices to soar 8% next year, says Halifax

House prices to soar 8% next year, says Halifax
Property prices are predicted to soar between four per cent and eight per cent in 2014, according to Halifax.

Despite the price rises the mortgage lender said “there is little current sign” of a house price bubble developing as a result of pressure on household finances and the likelihood of more properties coming onto the market.

On a national level, house prices have jumped by seven per cent in the first 11 months of the year, which puts the current average price at £175,000.

However an eight per cent rise would push property prices up to £188,903.

In its 2014 forecast, Halifax noted that house prices remain 12 per cent below their August 2007 peak and transactions this year remain around a third below the 2006 and 2007 average.

House prices are also lower in relation to earnings with the average price currently 4.8 times average annual earnings compared with a multiple of 5.8 in 2007.

Furthermore, the mortgage provider said price gains will not be traditionally isolated to London and the south east but instead all regions will experience price growth.

Halifax’s housing economist, Martin Ellis, said: “There are signs that the improvement is becoming more broadly-based with much of the country now recording price rises.

“We expect the regional pattern to be more even in 2014 with all regions experiencing price gains.”