The latest Halifax House Price Index (HPI) has shown that UK house prices have remained stable throughout the latest quarter with a 1.8% increase compared to figures from April-June 2018
However, on a monthly basis, house prices fell by 1.4% in September, the second consecutive fall for this measure.
The report also shows:
• House prices in the three months to September were 2.5% higher than in the same three
months a year earlier
• The annual growth rate slowed from the 3.7% recorded in August
Russell Galley, Managing Director, Halifax, said: “With the annual rate of house price growth easing to 2.5% in September from 3.7% in August and the quarterly rate of growth remaining at 1.8% for the second month, we are seeing a steadying in house price inflation across these more stable measures.
“This is set amongst mortgage approvals and completed house sales remaining broadly unchanged, although a gradual pickup in wage growth has helped to support household finances.
“The annual rate of growth is near the top of our forecast range of 0-3% for 2018, as a low supply of new homes and existing properties for sale, combined with historically low mortgage rates and a high employment rate, continue to support house prices.”
Despite figures displaying a strong monthly and quarterly growth suggesting signs of a steadying stability, property expert and CEO of Emoov, Russell Quirk, commented on the fall in September: “A 1.4% drop over the month may prompt many UK sellers to run for the hills, but this was always on the cards given the very rapid rate of growth seen over August.
“The market is by no means excelling, but we are certainly in a stronger position than we were last year as a steady stream of buyer activity has seen the market keep plodding on.
“The issue isn’t due to appetite, mortgage approvals are increasing, sales are completing, but with stock levels at their lowest in a decade, we need more on the menu to fuel the UK property market machine.
“While price growth may remain erratic month to month until greater political stability prevails, this lack of stock, coupled with the fact that the construction of new build developments is falling, will see prices continue to creep up in the mid-term.”
CEO of Yomdel, Andy Soloman said: “While mortgage availability remains very affordable and we’ve seen a slight lift in the earnings available, a decade wide lull in homes entering the market suggests that consumer confidence isn’t as prevalent across the property market as it is in other areas of the economy.
“The market certainly seems to have avoided any predicted nose dive but will continue to lose altitude until the government gets its house in order over Brexit.
“In the short-term, monthly price growth should remain static as we enter the time of year when other areas of the economy, such as the retail sector, receive a welcome boost in consumer spending, while the property market takes a back seat.”