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UK house prices surged to fresh record highs in April but growth is expected to slow later this year amid inflationary pressures, according to mortgage lender Halifax on Friday.
On an annual basis, the Halifax UK house price index rose by 10.8% in April, slowing slightly from 11.1% in March.
The house price index increased 1.1% in April month-on-month, easing from a 1.5% rise in March.
The average price for a home in the UK stood at a fresh record high of £286,079 in April, up from £258,295 at the same time last year.
Russell Galley, managing director at Halifax, said: ‘Housing transactions and mortgage approvals remain above pre-pandemic levels and the continued growth in new buyer enquiries suggests activity will remain heightened in the short-term. The imbalance between supply and demand persists, with an insufficient number of new properties coming onto the market to meet the needs of prospective buyers and strong competition to secure properties driving up prices.
‘However, the headwinds facing the wider economy cannot be ignored. The house price to income ratio is already at its highest ever level, and with interest rates on the rise and inflation further squeezing household budgets, it remains likely that the rate of house price growth will slow by the end of this year.’
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