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UK house prices fell again in January!

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
07/02/2018

Property prices are down for the second month in a row, dragging down the annual rate of house price growth

Average UK house prices fell by 0.6% in January to £223,285, following a 0.8% fall in December, according to Halifax.

The lender said that the quarterly rate of growth has slowed to zero, while the annual rate of change has been pulled back to just 2.2% – its lowest level in six months.

Russell Galley, managing director of Halifax, said: “Although employment levels grew by 102,000 in the three months to November, household finances are still under pressure as consumer prices continue to grow faster than wages. Additionally, it’s still too early to see any impact for first-time buyers from the abolition of stamp duty on purchases of up to £300,000, which was announced in the November Budget.”

No change coming

Ishaan Malhi, CEO and founder of online mortgage broker Trussle, said the slowdown was not typical of the market in January: “Buyers tend to flood the market after the New Year, so the fact that we’ve seen another fall in house price growth is a clear sign that the market is not picking up pace any time soon,” he explained.

But he added that there were winners as well as losers from the current stalling housing market. “Slowing price growth is often viewed negatively, but it’s clearly good news for first time buyers, who are also benefitting from recent stamp duty changes and the continued availability of low mortgage rates.”