Fall in annual rate of house price growth

Halifax has reported that house prices in the three months to February 2017 were 5.1% higher than in the same period a year ago.

However, they were down from 5.7% in January.

Meanwhile, prices in the three months to February were 1.7% higher than in the preceding quarter.

The monthly increase was 0.1%, taking the average price to £219,949.

Martin Ellis, Halifax housing economist, said: “House prices in the three months to February were 1.7% higher than in the previous quarter; down from 2.3% in January. The annual rate of growth fell to 5.1% from January’s 5.7%, the lowest since July 2013.

“Housing demand is being supported by an economy that continues to perform well with employment still expanding. Meanwhile, the supply of both new homes and existing properties available for sale remains low. This combination is pushing up prices.

“The annual rate of house price growth has, however, nearly halved over the past 11 months. A sustained period of house price growth in excess of pay rises has made it increasingly difficult for many to purchase a home. This development, together with signs of reduced momentum in the jobs market and squeezed consumer spending power, is expected to curb house price growth during 2017.”

Exit mobile version