According to the Halifax House Price Index house prices have jumped to the highest level since March, as a lack of supply has supported the housing market since last summer’s EU referendum.
House prices in the three months to December 2016 were 2.5% higher than in the three months to September 2016.
House prices in the three months to December were 6.5% higher than in the same three months of 2015.
Martin Ellis, Halifax housing economist, commented:
“House prices finished 2016 strongly. Prices in the final quarter of the year were 2.5% higher than in the previous quarter. The annual rate of growth increased, rising for the second consecutive month, from 6.0% in November to 6.5%.
“Slower economic growth, pressure on employment and a squeeze on spending power, together with affordability constraints, are expected to reduce housing demand during 2017. UK house prices should, however, continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding, and exceptionally low interest rates. Overall, annual house price growth nationally is most likely expected to slow to 1-4% by the end of 2017. The relatively wide range for the forecast reflects the higher than normal degree of uncertainty regarding the prospects for the UK economy this year.”
Some other key facts from the Halifax index were:
1. House prices increased by 1.7% between November and December
2. Luton recorded the biggest percentage rise in house prices among major UK towns and cities over the past year;
3. Total UK home sales in 2016 set to be broadly unchanged from 2015 and 2014 at 1.2 million;
4. Mortgage approvals were 6% higher in the three months to November compared with the preceding three months
5. Supply remains very low.
You can read the full Halifax report here
BHW Residential for Leicester Conveyancing
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