Monday 7 August 2017

House price growth continues to ease, but prices are still 2.1pc higher than last year

By Sophie Christie


The average house price in the UK was £219,266 in July
Property prices are still rising - but at a considerably slower pace, the latest data from Halifax has revealed.

Prices in the second quarter of the year were 0.2pc lower than in the first quarter, according to the Halifax house price index.

But in the three months to July, prices were 2.1pc higher than in the same three months a year earlier, and prices rose by 0.4pc between June and July.

The latest data shows that prices have been falling successively for the past four quarters, the first time this has happened in almost five years.

However buyers are still having to fork out more for their bricks and mortar than they did last year.

The average house price in the UK last month was £219,266 − 10pc above the August 2007 peak and 42pc higher than the low point of £154,663 in April 2009, towards the end of the recession.

Russell Galley of Halifax said: “House prices continue to remain broadly flat, as they have since the start of the year.

"Prices in the three months to July were marginally lower than in the preceding three months, while the annual rate of growth has edged down from 5.7pc in January to 2.1pc in July; the lowest rate since April 2013."




Mr Galley said the squeeze on spending power, together with the impact on property transactions of stamp duty changes in 2016, along with affordability concerns, appear to have contributed to weaker housing demand.

“However, a continued low mortgage rate environment, combined with an ongoing shortage of properties for sale, should help continue to support house prices over the coming months,” he said.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said that while lenders were still keen to lend and mortgage rates were staying extremely low as a result, buyers were now facing the issue of finding a property they wish to buy, with a lack of supply in the market.

The average stock of homes for sale per surveyor - the housing market is experiencing a lack of supply CREDIT: RICS

Recent Halifax data also showed that London continues to dominate the country's list of the most expensive property locations on a per-square-metre basis.

The average price per square metre across the UK has increased by 236pc over the past 20 years; in Greater London prices have increased by 402pc.


http://www.telegraph.co.uk/property/house-prices/house-price-growth-continues-ease-prices-still-21pchigher-last/

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