Halifax has revealed that prices in the final quarter of 2017 (October-December) were 2.7% higher than in the same three months of the previous year. In addition house prices in that quarter were 1.3% higher than in the previous quarter (July-September).However despite there being a rise of 0.3% in both October and November 2017 there was a fall in December 2017 of 0.6% which was the first price drop since June 2017.
According to the latest House Price Index from Halifax the average price of a property in the UK at the end of 2017 was £225,021 which is 2.4% higher than in January 2017 when the average price was £219,741.
Halifax says it expects house price trends in 2018 to be similar to last year. Overall, annual house price growth nationally is expected to stay low and in the range of 0.3% by the end of 2018. The main drivers for this apparently are the continuing effects of the squeeze on spending power as inflation has outstripped wage growth and the uncertainty regarding the prospects for the UK economy next year.
“As we’d anticipated, the housing market in 2017 followed a similar pattern to the previous year,” commented Russell Galley Managing Director, Halifax Community Bank. “House price growth slowed whilst building activity, completed sales and mortgage approvals for house purchase all remained flat. This has been driven by a squeeze on real wage growth and continuing uncertainty over the economy.”
“However nationally house prices in 2018 are likely to be supported by the ongoing shortage of properties for sale, low levels of house building, high employment and a continuation of low interest rates making mortgage servicing affordable in relative terms,” he added. “Overall we expect annual price growth to continue in the range of 0.3% at the end of 2018.”