Annual house price growth eases to 5.7% in the UK , says Halifax
Prices in the three months to January were 5.7% higher than in the same three months a year earlier in the UK, according to the Halifax House Price Index. This was lower than December’s 6.5% and followed two consecutive increases in the annual rate from a low of 5.2% in October 2016.
House prices fell by 0.9% between December and January.Prices in the last three months (NovemberJanuary) were 2.4% higher than in the preceding quarter.
Martin Ellis, Halifax housing economist, said:
“House prices in the three months to January were 2.4% higher than in the previous quarter; marginally down on 2.5% in December. The annual rate of growth eased to 5.7% from December’s 6.5%, and is well below last March’s peak of 10.0%.
“The quarterly and annual rates of house price growth remain robust even though they are lower than in spring 2016. UK house prices continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding, and exceptionally low interest rates. These factors are unlikely to change materially during 2017.
Nonetheless, weaker economic growth and increasing pressure on spending power, along with affordability constraints, are expected to dampen housing demand, resulting in some downward pressure on annual house price growth during the year.”