Halifax stated that over the past six years (2008-2013), property prices are 6.9% higher. However, the year-on-year data showed an increase of 1.6%. Halifax stated that "demand has increased this year, putting upward pressure on house prices and increasing levels of activity. Low interest rates, and higher consumer confidence supported by the increasing evidence that a sustainable economic recovery may now be underway, are helping to increase housing demand."
Halifax also noted that "both house prices and sales remain below the levels reached at the height of the last housing market cycle in 2006/2007."
However, Halifax did note that a dual-speed market existed. The firm stated that in London and the South East growth as outpacing the rest of the country. However, the bank claimed this could lead to a regional bubble.
Halifax also noted that in the North West and East, the Midlands, Wales and Scotland as well as the South West all showed sings of growth - on the back of the Help to Buy scheme.
However, the Index reported: “The main long term problem is the chronic lack of suitable housing. This constrained supply is the main issue to solve if we are to ensure a stable, balanced and sustainable UK housing market in the future. Ideally house prices would increase broadly in line with inflation and wages but until we solve the systemic problems inherent in the market these pressures look set to remain and are being closely monitored and controlled.”
