Halifax: Annual house price growth slows to 0.9%

House prices in October were 0.9% higher than in the same month a year earlier, according to the latest Halifax House Price Index.

On a monthly basis, house prices fell by 0.1%, while in the latest quarter (August to October) house prices were 0.2% higher than in the preceding
three months.

According to the bank, the average UK house price is now £232,249.

“A number of underlying factors such as mortgage affordability and wage growth continue to support prices, however there is evidence of consumers erring on the side of caution,” says Russell Galley, managing director of Halifax.

“We remain unchanged from our view that activity levels and price growth will remain subdued while the UK navigates political and economic uncertainty.”

Milton Rodosthenous, director of online auction service LetsBid Property, adds: “It’s no surprise to see that annual house price growth slowed again in October, adding to the overall flat trend recorded over the last few months.”

“That said, the market has remained stable and resilient in the face of an unprecedented political situation and a period of uncertainty that has stretched to over three years now.”

“It’s likely that activity in the market will stay at the same subdued pace over the next couple of months. However, the outcome of the General Election in December combined with the traditional market boost in January, should provide the property industry with renewed optimism for the New Year.”

“The market’s biggest problem in recent times has been a lack of confidence, but certainty surrounding the outcome of Brexit and the government alongside the positivity a fresh year brings, will encourage buyers and sellers to return to the market in volume.”

“With consumer confidence in the property market restored, there’s no reason why 2020 can’t be a great year for house price growth and transactions.”