UK house price growth ‘weakest since 2013’, Halifax property market index shows
Written by News on 07/04/2017
Growth in house prices was down significantly in March compared to the same month last year, new research suggests.
Halifax’s property market index showed that prices rose by just 3.8% last month, a great deal lower than the 10% increase recorded in March 2016.
It marks the weakest levels recorded in almost four years.
Martin Ellis, a housing economist at Halifax, said: "The annual rate of house price growth has more than halved over the past 12 months.
"A lengthy period of rapid house price growth has made it increasingly difficult for many to purchase a home as income growth has failed to keep up, which appears to have curbed housing demand."
The average house price in the UK is now £219,755, with no growth at all on a month-by-month basis since December.
But analysts say the lack of available properties and historically low interest rate levels should mean that growth in the market continues.
"Mortgage rates continue to stay low and competitive, which is helping support property prices to an extent," said Mark Harris, chief executive of mortgage broker SPF Private Clients.
"Even though swap rates have risen on the back of higher inflation, lenders seem willing to absorb some of the higher costs of funding, at least for now, in order to compete for business.
"This is good news for borrowers and those remortgaging as we head into what is usually the busiest time of the year for the housing market."
(c) Sky News 2017: UK house price growth ‘weakest since 2013’, Halifax property market index shows
