United Kingdom Housing Index

The Halifax house price index in the United Kingdom rose 8.1 percent from a year earlier in October 2021, the most since June, as the performance of the economy and a surge in demand for labor continued to provide a benign backdrop to housing market activity. Buying demand, however, is expected to cool in the months ahead on the back of higher interest rates, which in turn would be tempered by the continued limited supply of properties available on the market. The housing market has been supported over the past 18 months by the race for space, with buyers seeking larger properties due to the pandemic, the cut to Stamp Duty, and first-time buyers helped by parental deposits, improved mortgage access and low borrowing costs. On a monthly basis, house prices were up 0.9 percent in October, compared with 1.7 percent in September.