You are here: Home - News -

House price growth continues to slow – Halifax

by:
  • 07/06/2017
  • 0
House price growth continues to slow – Halifax
Annual house price growth has dropped to a rate of just 3.3%, according to the latest Halifax house price index.

Prices increased by 0.4% in May according to Halifax, to take the average house price to £220,706. However, over the quarter prices have fallen by 0.2%, while annual house price growth is now markedly lower than the 10% rate seen in March last year.

Martin Ellis, housing economist at Halifax, said: “The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, is likely to support house price levels over the coming months.”

Jeremy Duncombe, director of Legal & General Mortgage Club pointed out that even at this slower rate of growth house prices remain “staggeringly high” across much of the country.

He continued: “The only way to help struggling potential buyers to purchase their first home is to build more houses in key areas. We need a realistic, deliverable plan, that will give this country the injection of new homes it needs to expand the market and make homeownership more accessible to all those who desire it.”

 

Unsustainable

Jonathan Hopper, managing director of Garrington Property Finders, said the gap between house price growth and wage growth was “unsustainable” and so it was inevitable that price growth would ease, particularly in areas where they had risen fastest.

He added: “Election uncertainty is far from the only issue facing the property market, but if Friday morning brings a clear result there’s a good chance the market will ease past its current speed bump. A dose of clarity is what is needed to free up more supply and spur discretionary buyers back into action.”

Russell Quirk, CEO and founder of online estate agent eMoov, said the recent unpredictability of house prices was a reflection of the “turbulent landscape” of both the UK property market and the wider economy have had to traverse over the last year.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
SPF Private Clients
SPF directors Harris, Boles and King – the 20th birthday interview

London mortgage broker SPF Private Clients is celebrating its 20th birthday. Samantha Partington met with the three founding members to...

Close