The quarterly rate of house price increase has now declined for four months in a row, according to a report from Halifax.
The bank’s house price index, released today, shows a quarterly (September – November) increase of 0.7 per cent compared to the previous three months. The annual rate of increase was 8.2 per cent in the year to November, down from 8.8 per cent in the year to October, putting the annual rate of growth at its slowest since February.
House prices were up 0.4 per cent for the month, reversing October’s 0.4 per cent monthly decline, to a new average price of £186,941.
Housing economist Martin Ellis comments: “Receding buyer interest combined with a revival in private housing completions has brought supply and demand into better balance. These factors have in turn contributed to the easing in house price growth since the summer.
“But housing demand continues to be supported by a strengthening economy, rising employment levels, still low mortgage rates and the first gain in ‘real’ earnings for several years. We expect a further moderation in house price growth over the next year with prices nationally expected to increase in a range of 3-5 per cent in 2015.”
The report also shows home sales fell below 100,000 in October – to 98,490 – for the first time in 2014. Nonetheless, current estimates suggest that housing transactions in 2014 will total in excess of 1 million for the second consecutive year. This is the first time since 2006 and 2007 that home sales have exceeded 1 million in successive years.
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