House prices in the UK in the three months to June 2018 were 1.8% higher than in the same period a year earlier, proving to be marginally lower than the 1.9% annual growth reported last month, according the latest Halifax House Price Index.
The index further revealed that, in the most recent quarter (April-June), prices were 0.7% lower than in the preceding three months. However, the report highlighted that this figure appears to be a “symptom of the monthly volatility” in the data with the particularly weak figure reported in April between two relatively strong months.
Looking at the data on a monthly basis, property prices across the UK grew by 0.3% in June to £225,654.
Commenting on the findings, Halifax managing director Russell Galley said: “Activity levels, like house price growth, have softened compared with the final months of last year. Mortgage approvals have been in the low range of 63,000 to 67,000 since the start of the year, whilst home sales have remained flat so far this year. This is in contrast to the continuing strength of the UK jobs market with job creation still strong and pressure on household finances easing as real income growth edges up.
“At the half way stage of the year the annual rate is within our forecast range of 0-3% for 2018. We continue to see very positive factors of continuing low mortgage rates, great affordability levels and a robust labour market. The continuing shortage of properties for sale should also continue to support price growth.”
Foundation Home Loans director of marketing Jeff Knight also commented on the index, stating that house price growth was at its lowest earlier in the month, a trend which he expects is “likely to continue”.
“We have a potential August rate rise which will impact the subdued market, which has seen a slowdown in new enquiries amongst estate agents. Given the majority of new build bypass agents, perhaps this has exacerbated the hold on growth rates. However, new homes are needed-adding to the supply side of the demand & supply equation. With there still being uncertainty in our markets, this subdued market is probably going to continue, with low price inflation which is good news for first time buyers – and at least we have some growth and not a property price collapse,” Knight added.
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