The latest Halifax House Price Index doesn’t make for the most festive reading for homeowners across the UK, as house prices take a tumble in November.
The latest index shows that prices fell between October and November by a notable 1.4%, also down 1.1% over the quarter, with the annual change at just a 0.3% increase. Although the market tends to slow down as we approach the festive season as many take a back seat on their property purchase or sale, this is the lowest rate of price growth seen since December 2012.
But it’s not all doom and gloom.
Monthly UK sales saw a quarterly uplift of 2.4% while mortgage approvals rose to their highest levels since the start of this year. However, two issues that remain are the availability of affordable stock and the initial financial barrier or raising a deposit to secure it.
Managing Director of Halifax, Russell Galley, said:
“High employment, wage growth and historically low mortgage rates continue to make home ownership 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 a relatively limited supply of new and existing properties for sale, which continues to sustain house prices nationally.”
Despite this current slow in growth and the UK’s political landscape remaining an uncertain one, the property market is still expected to finish the year within forecasted industry expectations.
Our Property and Business Growth Expert at Yomdel, Andy Soloman, commented:
“Much like Theresa May’s EU exit strategy, the UK property market has continued to stall with the slowest rate of growth seen in the last six years. Of course, there is a seasonal aspect to this slowdown but with further complications likely to arise before a deal is reached on Brexit, price growth will no doubt remain erratic heading into 2019 as market uncertainty remains.
This year has been one of the toughest in recent times and we’ve seen some casualties as a result, but there is still a pulse running through the UK market despite many predictions that it would flatline.
An uplift in buyer demand, strengthening levels of property transactions and the continued affordability of mortgage products in recent months has helped bolster signs of life and this does, at least, bode well for the year ahead.”