House price growth reached a five year high in October. Prices increased by 5.8% in October, according to the latest data from Nationwide. Prices increased by 7.5% last month according to the latest data from the Halifax building society.
Mortgage approvals increased to 91,500 in September, the highest level since 2007. The stamp duty holiday is providing a positive boost to activity.
Behavioural shifts are impacting on the market according to the data from a Nationwide survey. 10% were in the process of moving as a result of the pandemic. A further 20% were considering a move for the same reason.
35% were considering enhancing their home, almost half wanted to add or maximise space. Retail sales figures demonstrate the growth in DIY and home improvement. DIY sales increased by almost 30%, year on year last month.
Robert Gardner, Nationwide's Chief Economist warns, "The outlook remains highly uncertain. Activity is likely to slow in the coming quarters". Unemployment is expected to rise, as the furlough scheme ends this month. Earnings will be under pressure, the house price to earnings ratio ticks higher. The stamp duty holiday expires at the end of March.
Martin Beck, at Oxford Economics, said: “The property market is unusually insulated from the economy’s troubles, in comparison with past recessions. Those hardest hit by job losses and cuts to income appear to be the young and low-paid, who typically are not homeowners nor home buyers.” The tide in activity may be set to turn ... but not just yet ...
Lest we forget! The US election is just days away. This could mean the end of our West Wing WTF series if the Biden-Harris ticket gets over the line ...
That's all for this week! Have a great, safe, week-end ... Hands, Face and Space ...
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