You are here: Home -

House price rises fall back in January

0
Written by: Owain Thomas
07/02/2020
Property prices are still going up, but the pace of those rises has slowed
House price rises fall back in January

House price growth in January slipped back to a more modest 0.4% after two consecutive months of more than 1% increases, according to Halifax.

This rate was up marginally from the 4% annual increase reported in December.

The strong growth of the previous two months was reflected in the quarterly rise of 2.3% being the highest three-month spell in more than a year.

Pent-up activity

Halifax managing director Russell Galley was cautiously optimistic about the figures, noting a number of important market indicators continue to show signs of improvement.

“We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy. However, it’s too early to say if a corner has been turned,” he said.

“The recent positive figures may actually represent activity that would ordinarily have been expected to take place last year, but was delayed by economic uncertainty.

“So while housing market activity has undoubtedly increased over recent months, the extent to which this persists will be driven by housing policy, the wider political environment and trends in the economy.”

He added the lender was still expecting a moderate rate of house price growth over the course of the year, with demand likely to continue to exceed the supply of properties for sale across the UK.

And with the growth in rental costs accelerating, many first-time buyers will continue to face a significant challenge in raising necessary deposits, he said.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your Mortgage Guides

Your Mortgage Award Winners 2020-2021

Download our guide to the best mortgage lenders in the UK

Read More >

Read previous post:
Government announces new First Homes scheme

The cost of new homes will be cut by a third for some categories of first-time buyers, including nurses and...

Close
+ +