The bank noted that over the last 12 months the housing market has performed in line with its prediction for growth of between two and four per cent, with falling mortgage rates and low numbers of properties for sale leading to “modest price growth”.
Russell Galley (pictured), managing director of Halifax, pointed out that prospects for next year appear to be a bit brighter, with uncertainty in the economy fading, and a predicted increase in transactions.
He continued: “The shortage of homes for sale and low levels of house building will continue to support high prices, while the challenges faced by prospective buyers in raising the necessary deposits may continue to constrain demand.“
Over the longer term, the bank suggested that a “renewed focus” on housing policy and increased spending on infrastructure outside of the south east would help to “rebalance regional house prices”.
Galley concluded: “Although prices will be supported in the near-term by insufficient new building and low interest rates, a sustained period of price growth below income growth as a result of policy action would help to address first-time buyer difficulties.”