Annual house price growth hits 2.8 percent

Written by Editorial Team
Last updated: 25th May 2019

Amid much-discussed doom and gloom Halifax has reported that house prices in the three months to February 2019 are 2.8% higher than they were in the same three months a year ago.

The price of the average house in the UK is now £236,800. That’s an increase of 1.8% over the preceding three months.

At the same time, demand for housing and the number of sales has dropped for the third month in a row. Enquiries from new buyers, new houses coming onto the market, and completed sales have all dropped.

Highly motivated buyers chasing fewer houses

The nationwide sales-to-stock level has dropped to 31.5%, which is the lowest it has been since September 2013.

Managing Director of the Halifax, Russell Galley, says “The shortage of houses for sale will certainly be playing a role in supporting prices.

“Annual house price growth at 2.8% is within our expectations, but is fairly subdued compared to 2015 and 2016 when the average growth was 8.3%.”

Taking a little bit longer to sell

Tomer Aboody, director of specialist lender MT Finance comments: “With all the uncertainty around Brexit it’s pleasantly surprising to see the resilience of UK house prices, and a slight increase in price growth is very encouraging.

“While properties might sit on the market a bit longer, those that have steered clear of inflated valuations are selling, and there is a substantial appetite for properties which are priced correctly.”