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Annual house price growth plummets to three-year low

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  • 07/11/2016
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Annual house price growth plummets to three-year low
The annual rate of house price growth fell to 5.2%, almost half its level in March, when annual house price inflation hit double digits at 10%, research from Halifax found.

This continues a six-month downward trend, and October’s 5.2% is now the lowest yearly growth rate since July 2013 (4.6%).

Compared to the previous month, UK house prices rose by 1.4% between September and October.

Martin Ellis, Halifax housing economist, said: “This expected slowdown appears to have been largely due to mounting affordability pressures, which have increasingly constrained housing demand. Whilst house price growth may ease further in the coming months, very low mortgage rates and a shortage of properties available for sale should help support price levels.”

Rob Weaver, director of investments at Property Partner, added: “Despite a clear softening in house price growth due to questions over affordability and demand from investors, the dust has seemingly started to settle. The market suffered an initial wobble post-Brexit but is proving resilient, mostly the result of the severe supply shortage that’s helping to prop up prices.

“Looking ahead, continued historically low borrowing rates and lack of housing stock, are likely to support prices for at least the short to medium-term.”

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