House price growth starting to slow, according to latest Halifax figures
This week Halifax released its latest House Price Index focusing on figures for August – pointing to a peak in the July market as property price growth rates begin to slow.
Key findings from the Bank’s most recent Index include a 3% increase in house prices between June and August compared to the previous three months March, April and May.
Between June and August prices were 9.7% higher than in the same period in 2013, indicating how far the property market has come in the last year.
However, a monthly change of just 0.1% and the quarterly increase of 3% compared with the annual change of almost 10% indicate the slowing of price growth, the firm has reported.
Furthermore, Halifax reports that sales of homes have remained stable between 101,000 and 104,000 each month so far this year, except for a high of 109,500 recorded in February.
The Index also declared the average house price in the UK during August to stand at £186,270.
“House prices in the three months to August were 3.0% higher than in the three months to May. Annually, prices were 9.7% higher in the three months to August than in the same three months last year.
Both the quarterly and annual increases were lower than in July,” commented Halifax Housing Economist, Martin Ellis.
Ellis also said that while demand is still strong due to economic recovery and improving consumer confidence, the prospect of an interest rate rise at some point over the coming months is likely to curb demand, narrowing the gap to supply.
“There are some signs of an improvement in housing supply, both in terms of more second-hand properties coming onto the market and increased numbers of new homes. These trends, if sustained, should help to improve the balance between supply and demand, contributing to an easing in the pace of house price growth,” he added.
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