Lack Of Supply Leads to House Price Growth

House buyers who have been struggling to get on the property ladder may find it increasingly difficult as values have increased over the last year.

Annual house price growth has risen by six per cent from between September and November 2015 to the same period this year, according to Halifax.

The financial services provider puts this down to a lack of properties available to buy, meaning that supply is incredibly low at the moment.

Martin Ellis, Halifax’s housing economist, said: “Very low mortgage rates and an on-going, and acute, shortage of properties available for sale should help support price levels.”

Indeed, according to the Royal Institution of Chartered Surveyors’ (RICS) recent monthly report, the number of properties to buy dropped in October.

It revealed that while homebuyer demand was increasing, there have been fewer properties to purchase.

RICS’ chief economist Simon Rubinsohn said: “The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the on-going discussions surrounding Brexit.”

Halifax’s latest statistics show that property values reached £218,002 in November, an increase of 0.2 per cent from October, which is the third month in a row that prices have risen. It was also a 0.8 per cent rise from the previous quarter (June to August).

The findings also represented the highest annual house price growth since August earlier this year when it hit 6.9 per cent.

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