The housing market has experienced its lowest rate of annual growth in five years, according to the latest statistics from Halifax.
Over the year prices went up by 1.5% according to its House Price Index. This compares to the previous month’s annual rise of 2.5% and it means the average home in the UK is currently £227,869.
Industry experts have pointed to Brexit as one of the causes of the slowdown. Jonathan Samuels, CEO of property lender Octane Capital, said the political and economic uncertainty had sent the property market into lockdown.
He said: “We’re at that point in the cycle where there are considerably more reasons to sit tight than start scanning property websites.”
He added: “There’s very little stock on the market and lack of choice, for many people, means the incentive to buy simply isn’t there. Moving home is a major financial commitment and right now the headwinds of Brexit are causing many people to batten down the hatches.”
Estate agents say this ‘sluggish’ growth mirrors what they were seeing on the high street and they have reported buyers beginning to be more realistic about pricing.
Lucy Pendleton, founder and director of independent estate agents James Pendleton, said: “The sense of urgency with which people are adjusting their prices has increased.
“Discounts of £200,000 on homes over a million were rare six months ago but are now not uncommon.
“We’ve narrowly avoided a three-month run of negative price growth but in what is now certainly a buyers’ market in many areas of the country, the boot is on the other foot.”
First-time buyers
The slow growth is also being greeted as good news for those trying to get onto the housing ladder. Kevin Roberts, director of Legal & General Mortgage Club said times were changing for first-time buyers but there were still challenges for homemovers.
He added: “More sustainable house price growth, an extension of Help to Buy and Stamp Duty exemption for Shared Ownership properties puts our young people in a much stronger position to buy their first home.
“But what of those further up the property ladder? The changes in the Budget were certainly welcome but if we want to create a housing market that is accessible and fair to all, we need to see more support for downsizers and families too.”
