UK's Annual House Price Growth Slows to 0.3%

Marco Green
December 9, 2018

As per the report, the house prices in the three months till November were 0.3% higher than in the same three months a year earlier - slowing from the 1.5% annual growth recorded in October, and recording the lowest rate of growth since December 2012.

Halifax managing director Russell Galley says: "While this is the lowest rate of growth in six years, it remains within our forecast range of 0 per cent to 3 per cent for 2018".

House prices grew at the slowest rate in nearly six years in November as wavering consumer confidence before the UK's departure from the European Union took its toll on the housing market. In the three months to October, this number stood at a gain of 0.2 per cent.

Halifax said house prices have now fallen for three months out of the past four, on a month-on-month basis.

Although political uncertainty continues to be the driving force behind a high majority of serious buyers and sellers remaining on the fence, the economic fundamentals for first-time buyers are strong as help-to-buy and low mortgage rates contribute to providing affordability outside of the capital.

'This period began after the market pulled its face out of the mud of a disgusting 2012, when plenty of property just would not budge and prices fell throughout the year.

Meanwhile, James Pendleton founder director Lucy Pendleton comments: "The market has buckled but don't blame Brexit, blame the piggy bank mentality". This is all good news for borrowers.

The figures contradict recent Nationwide statistics that showed house price growth improved by 1.9 per cent in November to push off a five-year low.

"Consequently, we expect overall house price gains across the United Kingdom over 2019 will be limited to around 2%".

Meanwhile, for only the third time in the last 18 months more than 67,000 mortgages were approved in October to finance house purchases, up 2 per cent on September's numbers.

Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors, said: "Looking forward, we don't expect activity to change much, bearing in mind seasonal and political distractions".

Experts believe that house price growth will remain subdued until more is known about Britain's exit from the European Union.

She adds: "There's also a huge amount of discussion about a looming interest rate rise, which will be putting upsizers off moving as they'll be more wary of taking on more debt".

Other reports by Click Lancashire

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