This week’s Halifax House Price Index shows house prices have continued to climb, despite the rate of growth slowing to its lowest point since March 2013.
Halifax’s House Price Index provides a temperature test of the market based on mortgage approvals, and gives a good indicator of market health based on buyer demand.
In October, prices increased by 1.5% annually, with a quarterly increase of 0.2% and an increase on a monthly basis of 0.7%. This monthly increase shows promising signs for an otherwise weary market, breaking the trend of two consecutive drops over the previous months.
But while prices have still increased across the board, the rate at which they have climbed has fallen to its lowest in five years and seven months.
Despite this low rate of growth, house prices are predicted to stay within the 3% range throughout 2018 due to mortgage affordability, low housing stock to meet demand, and an increase in employment rates.
Our Business Growth Expert and Yomdel CEO, Andy Soloman was on hand to provide comment on the latest figures..
“The latest Halifax figures portray a housing market consistent with much of the wider economic picture, as a reduction in consumer sentiment on both sides of the selling process brings the rate of growth to its slowest in five years and seven months.
We’ve seen a similar slowdown across other areas of the economy, such as the retail sector, and it’s unlikely that we will see the market show any uplift in the rate of growth until the start of next year, although prices should at least continue to increase.
While employment rates are improving, wage growth is still trailing some way behind house price growth, and so for those not priced out of homeownership, a sale or purchase will now take a back seat as Christmas approaches rapidly.”