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House price growth falls to six-year low

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House prices across the UK nudged up by just 0.3% compared to the same period last year
House price growth falls to six-year low

Average UK house prices in the three months to November were only 0.3% higher than in the same three months a year earlier, according to Halifax.

The lender said the rate of growth had slowed significantly from 1.5% in October, dropping to its lowest level since December 2012.

House prices in the latest quarter (September-November) fell by 1.1% compared to the preceding three months (June – August).

And the monthly figures were even more bleak, with property prices dropping by 1.4% in November. The price decrease made it three monthly falls out of the last four, taking the average house price to £224,578.

Russell Galley, managing director, Halifax, said: “While this is the lowest rate of growth in six years, it remains within our forecast range of 0% to 3% for 2018.

“High employment, wage growth and historically low mortgage rates continue to make homeownership more affordable for many, though the need to raise a significant deposit still acts as something of a restraint on the market. This is largely offset by relatively limited supply of new and existing properties for sale, which continues to sustain house prices nationally.”

Jonathan Samuels, CEO of property lender, Octane Capital, added: “The lowest rate of growth for six years is a reflection of how Brexit uncertainty has hit the property market for six.

“Without wanting to appear overly pessimistic, there’s every chance 2019 could be 2009 all over again.

“People need to be preparing for that eventuality and the low level of transactions suggests they are. All the ingredients for extreme uncertainty, both political and economic, are in the mix.”

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