You are here: Home - News -

Housing market ‘directionless’ with annual price growth at 2.7% – Halifax

  • 09/04/2018
  • 0
Quarterly house price growth dropped -0.1% in the quarter to March and house buying and selling activity has softened overall in the last 12 months.



The average house price reached its highest ever level at £227,871, after a 1.5% monthly rise in March, with mortgage rates at their most affordable level for a decade.

Typical mortgage payments accounted for less than a third of homeowners’ disposable income in the fourth quarter of 2017 compared to almost half or 48% in quarter three 2007.


Strong employment


Russell Galley, managing director, Halifax, said: “Mortgage approvals are down compared to 12 months ago, whilst home sales have remained flat in the early months of the year. This lack of direction in the housing market is in stark contrast to the continuing strength of the UK jobs market.”

Galley confirmed the unemployment rate is now the joint-lowest since 1975 and in the three months to January there were 402,000 more people in work compared to a year earlier.

“In the coming months we expect price growth to remain close to our prediction of 3% despite the very positive factors of continuing low mortgage rates, great affordability levels and a robust labour market.  The continuing shortage of properties for sale will also support price growth.”

House prices increased by 1.8% annually in February, which Halifax said was underpinned by lack of supply and the low mortgage rates.

Danny Belton, head of lender relationships, Legal & General Mortgage Club, said: “There might be talk of a slowdown in the property market, but the reality is that house prices are still rising – just at a much healthier rate.

“For first-time buyers in particular, this should be seen as particularly good news – prices are stabilising, and mortgage rates remain close to all-time lows, so now is a good opportunity for these buyers to get their feet firmly on the housing ladder.”

Brian Murphy, head of lending for Mortgage Advice Bureau said: “The report released by the Halifax this morning suggests that the UK housing market is ticking over steadily, with house price growth mainly unchanged on the previous quarter.

“The month on month increase of 1.5% now suggests an all-time high in terms of average house price, and overall the data would seem to indicate that the market is so far performing to expectations this year, including the annual forecast released by the Halifax for 2018 at the end of 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.


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.


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.


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.
Read previous post:
‘A good number of interest-only mortgages were arguably mis-sold’ – Star Letter 06/04/2018

Mortgage Solutions and its sister title Specialist Lending Solutions select the most thoughtful or thought-provoking comment as Star Letter.