7 October 2021
Housing supply is still considerably below the level of demand, according to Tomer Aboody, director of property lender MT Finance.
Aboody said a combination of buyers needing to move and taking advantage of the low-interest rate environment where a number of mortgages are sub-1 per cent is pushing up house prices.
UK house prices rose by 1.7% in September, equating to an increase of £4,400 to the value of the average property, according to the latest Halifax House Price Index.
This means that UK house prices are now at a record high of £267,500.
Nigel Purves, chief executive of Wayhome added that house prices continue to cause affordability headaches for the majority of hopeful first-time buyers.
He said: “With the furlough safety net officially removed and the average cost of a property at record highs, millions will be priced out of desired areas and forced into renting for far longer than they initially planned.”