Figures from the country’s biggest mortgage lender revealed house prices increased by 1.8% in the three months to June compared to the same period in 2017, with the average home in the UK coming in at £225,654.
Figures from the country’s biggest mortgage lender revealed house prices increased by 1.8% in the three months to June compared to the same period in 2017, with the average home in the UK coming in at £225,654.
According to the Halifax House Price Index the rise is marginally lower than 1.9% annual growth experienced in May, providing further evidence of the market slowing down.
Meanwhile, over the month of June prices went up by 0.3% with Halifax reporting activity levels in the market had also softened compared with the final months of last year.
Russell Galley, managing director of Halifax also said the number of mortgages being approved had been low since the start of the year and home sales had so far remained flat in 2018.
This, he said, was in contrast to the strong jobs market and pressure on household finances easing.
He added: “We continue to see very positive factors of continuing low mortgage rates, great affordability levels and robust labour market. The continuing shortage of properties for sale should also continue to support price growth.”
‘Realignment’ of prices
Jeremy Leaf, north London estate agent and former Royal Institution of Chartered Surveyors residential chairman explained the figures were significant because Halifax was the country’s biggest mortgage lender.
He added: “On the ground, we have reached the limit of what many buyers can afford so this is not a correction, more a realignment of prices to reflect changes in circumstance and to address the potential standoff between buyer and seller.”
Lack of homes
Meanwhile Jonathan Samuels, CEO of property lender Octane Capital said he expected things to be ‘equally lacklustre’ over the next month as people waited to see whether the Bank of England increased interest rates.
He added: “The chances of a rate rise have just increased and that is likely to dampen activity levels further during July.
“As ever, the lack of homes on the market will prevent prices going into freefall. For anyone keen to buy, there are slim pickings at present.
“It’s a buyers’ market and many prospective sellers are choosing to sit it out rather than take a hit.”
