empty
 
 

2018.03.0707:47:00UTC+00UK House Price Growth Weakest Since 2013: Halifax

UK house prices grew at the slowest pace in five years in February on squeezed income and uncertainty stemming from Brexit, data from the Lloyds bank subsidiary Halifax and IHS Markit showed Wednesday.

House prices increased 1.8 percent year-on-year in the three months to February, slower than the 2.2 percent rise registered in January.

This was the weakest rate since March 2013. Nonetheless, the pace of growth was faster than the expected 1.6 percent.

Quarter-on-quarter, house prices decreased 0.7 percent, reversing a 0.1 percent increase in the three months to January. This was the first decline since May 2017.

On a monthly basis, house prices rose 0.4 percent, in contrast to January's 0.5 percent decrease. This was the first increase in three months. Monthly house price inflation came in line with expectations.

The average price in February was GBP 224,353.

Russell Galley, managing director at Halifax, noted that mortgage rates continue to stay low by historical standards despite the rate hike in November.

"While we expect price growth to remain low, the low mortgage rate environment, combined with an ongoing shortage of properties for sale, should continue to support house prices over the coming months," Galley added.

Data from the Bank of England showed that mortgage approvals hit a 6-month high of 67,478 in January and secured lending grew at a steady pace of 3.3 percent.

With house prices very high relative to incomes and interest rates now starting to rise, house price inflation is likely to stay close to current rates over the remainder of 2018, Hansen Lu, an economist at Capital Economics, said.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback