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| UK house prices rose by 7.5% in 2013, Halifax says | UK house prices rose by 7.5% in 2013, Halifax says |
| (about 1 hour later) | |
| House prices across the UK rose by 7.5% last year, according to the Halifax, the country's largest mortgage lender. | House prices across the UK rose by 7.5% last year, according to the Halifax, the country's largest mortgage lender. |
| However, Halifax said prices actually fell by 0.6% in December, taking the average price of a property to £173,467. | However, Halifax said prices actually fell by 0.6% in December, taking the average price of a property to £173,467. |
| Last week, the Nationwide building society said house prices had risen by 8.4% in 2013. | Last week, the Nationwide building society said house prices had risen by 8.4% in 2013. |
| Separately the house-builder Persimmon gave an upbeat assessment of the market over the calendar year. | Separately the house-builder Persimmon gave an upbeat assessment of the market over the calendar year. |
| Looking ahead, the Halifax predicted that prices in 2014 would continue to rise at a similar pace to last year. | Looking ahead, the Halifax predicted that prices in 2014 would continue to rise at a similar pace to last year. |
| Martin Ellis, the Halifax's chief economist, said the UK's economic recovery was likely to boost confidence in the market further. | Martin Ellis, the Halifax's chief economist, said the UK's economic recovery was likely to boost confidence in the market further. |
| "This will increase the likelihood that more people will consider buying a property in 2014, therefore supporting housing demand," he said. | "This will increase the likelihood that more people will consider buying a property in 2014, therefore supporting housing demand," he said. |
| The increase in house prices in 2013 was more than three times the rate of CPI inflation, which rose by 2.1% between November 2012 and November 2013. | The increase in house prices in 2013 was more than three times the rate of CPI inflation, which rose by 2.1% between November 2012 and November 2013. |
| The Halifax also said that the number of housing transactions last year is likely to have exceeded one million for the first time since 2007. | The Halifax also said that the number of housing transactions last year is likely to have exceeded one million for the first time since 2007. |
| Help to Buy | Help to Buy |
| The house-building group Persimmon reported a "strong finish" to 2013, with revenues up 21% on 2012. | |
| It said completions had accelerated during the year. | It said completions had accelerated during the year. |
| It built 6,506 new homes in the second half of 2013, 30% more than it did in the first half. | It built 6,506 new homes in the second half of 2013, 30% more than it did in the first half. |
| Overall during the year it sold 11,528 new homes, a 16% rise on 2012. | Overall during the year it sold 11,528 new homes, a 16% rise on 2012. |
| The government's Help to Buy scheme may have helped that process. | The government's Help to Buy scheme may have helped that process. |
| The first part of the scheme, involving government equity stakes, began in April. | The first part of the scheme, involving government equity stakes, began in April. |
| The second part, involving government-backed mortgage guarantees, began in October. | The second part, involving government-backed mortgage guarantees, began in October. |
| Mortgage availability | |
| The Bank of England also reported that the supply of mortgages became more available in the last quarter of 2013, particularly to those borrowing a high percentage of their home's value. | |
| In its latest Credit Conditions survey, it said lenders were becoming more willing to give mortgages to people wanting to borrow 75 or even 90% of the value of their properties. | |
| It said this was partly due to the Help to Buy scheme, where buyers only have to find a 5% deposit. | |
| Lenders are also being less strict about who they lend to. | |
| "Consistent with an increased risk appetite, credit scoring criteria were loosened and the proportion of loan applications being approved increased significantly," it said. | |
| The Bank also expects a "significant" increase in the supply of mortgages in 2014, despite the fact that support from the Funding for Lending scheme has now been withdrawn from mortgages. |