Sector - Housing
Halifax names Luton as 2016 hotspot as house price inflation picks up
Luton named UK’s property hotspot last year, according to UK’s largest mortgage lender.
Halifax has named Luton as the UK’s property hot spot last year, with house prices rising 19.4% in 2016.
Halifax said that annual house price inflation climbed up again last month across the UK, with prices rising by 6.5% in the year to the end of December. That was up from a rate of 6.0% in November and 5.2% in October.
Inflation had been easing between March and October 2016.
According to Halifax, the latest increase leaves the average house price at £222,484, another record level.
Martin Ellis, Halifax Chief Economist, said: “House prices finished 2016 strongly”.
However, house price inflation is expected to cool in 2017, to between 1% and 4%.
“Slower economic growth, pressure on employment and a squeeze on spending power, together with affordability constraints, are expected to reduce housing demand during 2017,” Mr Ellis said.
Reports from Nationwide earlier this month stated that house prices increased by 4.5% in 2016, the same rate as 2015.
The average house in Luton increased in price by £41,700 during 2016, to £256,636. Halifax said the main reason was how close to London it was, with easy commuting for those who may work or study in the capital, but are not able to live there.
Dunstable, a few miles away, saw prices rise by 17.9% during the year.
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