Christ­mas slow­down in UK hous­ing mar­ket may have ‘started early this year’

Yorkshire Post - - NEWS -

AN­NUAL HOUSE price growth has slowed sharply to the weak­est rate seen in six years, the Hal­i­fax bank has re­ported, with av­er­ages fall­ing for three months out of the last four.

The in­dex, which is a rat­ing across the UK, found that prop­erty val­ues rose slightly by 0.3 per cent in the year to Novem­ber, fol­low­ing a 1.5 per cent up­lift in Oc­to­ber.

The an­nual in­crease in Novem­ber marked the low­est growth since De­cem­ber 2012, the bank added, with the av­er­age house price now at £224,578.

“House price growth has slowed as we ap­proach the end of the year,” said Rus­sell Gal­ley, man­ag­ing di­rec­tor.

“While this is the low­est rate of growth in six years, it re­mains within our fore­cast range of zero to three per cent 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 house prices na­tion­ally.”

Mike Scott, chief prop­erty an­a­lyst at es­tate agent Yopa, said Hal­i­fax’s fig­ures sug­gest “that the usual Christ­mas slow­down in the hous­ing mar­ket has started early this year, as peo­ple wait for the out­come of the cur­rent po­lit­i­cal sus­tain tur­moil be­fore mak­ing long-term com­mit­ments, such as buy­ing a new home”.

Howard Archer, chief eco­nomic ad­viser at EY Item Club, said: “We sus­pect that the hous­ing mar­ket will be rel­a­tively lack­lus­tre over the com­ing months – al­though there are vary­ing per­for­mances across re­gions with the over­all na­tional pic­ture dragged down by the poor per­for­mance in Lon­don and parts of the South East.

“Con­se­quently, we ex­pect over­all house price gains across the UK over 2019 will be lim­ited to around two per cent.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.