House prices remained stable last month, despite the generally expected interest rate hike by the Bank of England.
The average price of a home in the UK rose by 0.1 percent between July and August to £ 229,958, or £ 182, according to mortgage provider Halifax, but annual real estate inflation accelerated to 3.7 percent.
Britain's largest mortgage lender emphasized that the number of first-time buyers has now reached levels not far from their pre-2007 crisis.
Going up: the annual growth of house prices accelerated to the fastest pace in 9 months
The director of Halifax, Russell Galley, said that August had the usual combination of economic conditions and housing market conditions, with buyers not deterred by the rise in base rates from 0.5 percent to 0.75 percent.
"While the pace of employment growth has slowed recently, a low unemployment rate and a gradual upswing in wage growth contribute to supporting the household's finances," he said.
This was accompanied by interest rates that remain on the market at a historically low rate and a stable but limited supply of new homes, and which further support house prices. & # 39;
The price measure for house prices in Halifax generally showed higher house price increases in recent months than other measures – nationally house price inflation declined 2% year-on-year in August.
The Halifax report also showed that broader mortgage availability and the taxpayer-supported Help to Buy loan system have helped more start-ups on the home ladder over the last decade.
It said that the number of first-time buyers more than doubled since it dropped to a low record of 72,700 in the first half of 2009.
There were 175,500 new buyers in the first six months of 2018 – an increase of 3 percent compared to the first half of 2017 and only 8 percent less than at the peak of the last boom in 2006, where there were 190,900 first – time buyers .
Mike Scott, from permanent broker Yopa, said the market had grown again after the growth slowdown in the spring.
Regarding the increase in the number of starters, he added: & # 39; Because starters underpin the entire housing market, this suggests that the market will continue to perform until 2019 and even further improve. & # 39;
August house prices: monthly growth slowed, but the annual figure was highest since November last year
Halifax said that slightly more than half (51 percent) of all distributed mortgages was for starters – an increase of 38 percent in 2008, with the share especially increasing in 2013 when the Help-to-Buy scheme was introduced.
It comes after reports came out last weekend that Help to Buy is being demolished in 2021.
Critics say that the plan fails to help people who need it the most, while raising house prices and raising and paying profits to Britain's builders.
Recent official figures showed that thousands of families with higher earnings made use of Help to Buy, even though it is aimed at beating starters.
Ewen Bunting on brokers James Pendleton said that a low number of homes and Help to Buy push prices higher.
He said: "It does not matter that affordability imposes the limits of common sense on most people, when borrowing is dirt-cheap, people still have to move and still climb over each other to do so in some cases.
& # 39; This especially applies to starters who are not far from the peak before the crisis. It is the artificial stimulants of the government on the demand side, namely the scheme for help with buying and the tax exemption for starters, which ensure that the annual growth rate at this level is reached. & # 39;
Howard Archer of the EY ITEM Club commented that the price benchmark for Halifax homes has seen sharper monthly movements than other indices, such as those from Nationwide, and warned to place too much value on one particular survey.
He said that in the coming months he would not have a meaningful market revival & # 39; expects, and predicts that the growth in house prices will remain limited to about 2.5 percent this year and next year.
He said: "The recent sharp monthly movements in the Halifax yardstick – and the contrast between Halifax and Nationwide data – underline the fact that house price measures can be volatile and vary month after month between reporting agencies.
& # 39; It is therefore advisable not to attach too much value to a particular survey, but to try and get an overview. & # 39;
The number of completed home sales in the UK remains close to the monthly average of the past 12 months, Halifax said
Brian Murphy of the mortgage consulting firm said the top line masked the current image of regional fragmentation.
& # 39; It is possible that when we are on our way to the main sales season in September and October, those who act now probably do so with the goal of moving for Christmas, the areas where the market has been stagnating for the last couple of months, possible new stock will appear on the market. & # 39;