UK House Price Growth Hits Six Year Low
The Halifax Price Index has revealed that the annual house price growth of 0.3% is at its lowest rate since December 2012. Currently, the average house price in the UK stands at £224,578.
Furthermore, on a monthly basis, house prices have decreased by 1.4% from October’s figures. This also means that house prices have continually fallen for three out of the last four months.
Similarly, as we approach the final quarter of the year, house prices have reduced by 1.1% from the figures between May and July.
Russell Galley, Managing Director, Halifax, said: “House price growth has slowed as we approach the end of the year, falling from 1.5% in October to 0.3% in November, with the average cost of a home now £224,578. While this is the lowest rate of growth in six years, it remains within our forecast range of 0% to 3% for 2018.
“High employment, wage growth and historically low mortgage rates continue to make home ownership more affordable for many, though the need to raise a significant deposit still acts as something of a restraint on the market. This is largely offset by relatively limited supply of new and existing properties for sale, which continues to sustain house prices nationally.”
Simon Bath, CEO of When You Move, said: “There is always a seasonal slowdown in price growth in the market in the months leading to Christmas and this has to be considered when analysing the property market’s performance over the last month. Having said that, 2018 has been one of the toughest years for the UK property industry in recent times. With the current uncertain political climate guaranteed to cast a shadow over house price growth in the coming months, this may just become a reoccurring pattern until Brexit is finalised.
It is however, important to remember that the UK housing market is incredibly resilient. There is room for optimism fuelled by an uplift in buyer demand and affordability of attractive mortgage products in recent months, serving as a much needed boost to the market. First-time buyers trying to get their foot on the property ladder can capitalise on the current circumstances in the market, allowing them to purchase a home that may originally have been out of their price range or not in their ideal location.
Gary Baker, chief executive officer of proptech company Reapit, said: “As we head into 2019, we predict a continuation of this subdued performance, as long as the economic and political status quo remains unchanged. Transactions have been flat for the past three years, and caution is likely to remain whilst Brexit remains unfinished,’ he pointed out.
“Furthermore, if Brexit stalls, or more significant uncertainty over the Government develops, it will be a painful road ahead. However, there is room for optimism in this scenario as we are seeing house price reduction in some areas, which could make property more affordable and also boost the economy by increasing spending power and buying capacity,’ he explained.
“If the Brexit deal passes through Parliament, we could potentially see a much more confident market, resulting in more transactions, fewer withdrawals, and increased prices. Although transactions may reduce significantly, with depressed prices discouraging sellers from listing their properties, low prices will put buyers back in control. First time buyers, in particular, could benefit from slashed prices.”
As the market is dealing with Brexit uncertainty, what impact will the Parliamentary vote postponement on the Brexit deal have on the housing market?