House prices increased after a few months of cooling, Halifax latest house price index shows.
In the quarter to January 2015, prices were 1.9 per cent higher than in the previous three months and this was the first rise on quarterly basis in the last six months.
The market seems to have gotten a boost from the historically low mortgage rates, the changes to stamp duty and the growing wages, according to Halifax.
Nevertheless, the property inflation in 2015 is seen at considerably more moderate levels than last year’s price growth.
“Housing demand should continue to be supported by an expanding economy, continuing low mortgage rates and a boost to households’ spending power resulting from lower consumer price inflation and reduced fuel bills. Nonetheless, we expect the overall downward trend in house price growth seen since last summer to continue over the coming months. Nationally, house prices are predicted to increase in a range of 3 to 5% in 2015 compared with 8% last year,” Martin Ellis, housing economist at Halifax, comments.
House prices advanced 2 per cent from December to January, which is the biggest monthly increase recorded for January since 2009 (2.4 per cent).
Mortgage approvals also marked a first rise in a while. After falling for five months in a row, approvals rose 2 per cent between November and December, according to Bank of England figures. The improvement in approvals may be an indication that the market slowdown will end soon.
Home sales remained almost unchanged in December, while falling in the previous four months. Sales for the whole 2014 were 15 per cent higher than in 2013, but most of the high activity was concentrated in the first half of last year.
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