The latest house price index has been released providing a further indicator on the health of the UK property market.
Halifax is one of the leading house price indices and provides data based on mortgage approvals, a widely accepted measure of buyer demand although it isn’t as concrete as sale completion data.
The latest figures show that house prices fell in September by -1.4%. While this is quite a notable reduction on a monthly basis, the market has still seen a high degree of stability with an annual increase of 2.5% and a 1.8% increase during the quarter
The number of mortgage approvals has increased slightly but remain relatively low while the number of sales completing also remained stable. However, the number of homes actually entering the market remained at a low and as a result, 2018 has seen the lowest level of stock for sale in the last 10 years.
This is a clear indicator that while UK buyers are returning to the market, Brexit uncertainty is still deterring many sellers from entering the fray. With the market approaching the festive season a further reduction in market activity across the board may see this downward price trend continue, but according to Halifax, the market is on course to finish near the top end of their forecast.
Comment from growth expert and Yomdel CEO, Andy Soloman.
“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.”
