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Supply and demand dynamics hold house prices steady

  • 08/05/2015
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Consistent tension between improving demand for homes and lack of supply of homes for sale kept house price inflation steady at 2.2% in the three months to April.

Analysis of the housing market by Halifax revealed the three-month growth rate fell for the first time this year following three successive rises. Last month the three-month growth rate was 2.6%.

Annual house price inflation rose from 8.1% in the three months to March to 8.5% in the three months to April. This sits some way below the peak of 10.2% annual house price growth seen in July 2014.

The average house price in the UK now stands at £196,412.

Housing economist Martin Ellis said the push-pull price dynamic in the housing market had helped to keep inflation between a range of 2.2% and 2.6% on a quarterly basis, and at annual rate of between 8% and 9%.

Alex Gosling, CEO of online estate agents, said today’s general election result was the end of months of uncertainty.

“As the UK reflects on a new Conservative government the housing market will be hoping for a pick-up in activity after a six-month period of fairly static home sales. The house price rise of 2.2% this quarter is encouraging news for home sellers although the annual rate still remains lower than the bounce we saw last summer.”

Gosling said the recurring problem had been the lack of supply, but the hope was that now the cloud of uncertainty had been lifted home sellers would have more confidence to approach the market.

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