Household finances to limit demand
HOUSE prices in the final three months of 2013 were 1.9% higher than in the previous quarter of the year, according to the Halifax.
“Mounting signs that the economic recovery is becoming firmly established, together with a predicted decline in unemployment, should further boost consumer confidence over the coming months. This will increase the likelihood that more people will consider buying a property in 2014, therefore supporting housing demand,” says Halifax economist Martin Ellis, who added a note of caution. “Nonetheless, continuing pressures on household finances, as earnings again fail to keep pace with consumer price inflation, are expected to constrain demand.”