Annual house price growth across the UK in the three months to November was 0.3% higher compared to the same three months a year earlier, the latest Halifax House Price Index has revealed.
The data highlighted that annual growth has slowed in the last month, plummeting from a recorded 1.5% in October, marking the lowest rate of growth since December 2012.
When looking at property prices on a quarterly basis, they dropped by 1.1% when compared to the preceding three months, while also falling on a monthly basis by 1.4%. As a result of this, three of the last four months have experienced house prices falling.
The average house price is currently sitting at £224,578.
Commenting on the findings, Halifax managing director Russell Galley said: “House price growth has slowed as we approach the end of the year, falling from 1.5% in October to 0.3% in November, with the average cost of a home now £224,578. While this is the lowest rate of growth in six years, it remains within our forecast range of 0% to 3% for 2018.”
However, Galley added that wage growth, high employment and historically low mortgage rates have “continued” to make home ownership more affordable for many, despite the need to raise a significant deposit, which acts as a restraint for many.
Also commenting, Trussle mortgage expert Dilpreet Bhagrath: “House price growth is still slow due to a lack of activity in the market and we expect this to continue throughout the winter, until there’s more clarity around Brexit and we’re all on firmer footing. 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.
“This period of slowdown does offer a window for aspiring first-time buyers who already have a deposit saved up. House price growth is the lowest it’s been for several years and since the recent Budget, more can now take advantage of stamp duty allowances for shared ownership homes. Anyone in this position must make sure they get the best possible mortgage deal based on its true cost rather than just the cheapest headline interest rate.”
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