Halifax: annual house price growth above 10%

Prices in Q1 2016 were 10.1% higher than in the same three months a year earlier, according to the latest Halifax house price index.

Related topics:  Finance News
Rozi Jones
7th April 2016
house growth graph this is actually the green one

This was higher than the 9.7% rise recorded in both January and February and above the average annual rate which has remained within the 8%-10% range for nearly the whole period since the start of 2015.

House prices in Q1 2016 were 2.9% higher than in Q4 2015.

House prices rose by 2.6% between February and March, more than offsetting February’s 1.5% fall.

However Halifax predicts that uncertainty surrounding Brexit and continuing supply issues could soften the market over the next few months.

Martin Ellis, Halifax housing economist, said:

"House prices in the first three months of 2016 were 2.9% higher than in the final quarter of 2015. The annual rate has grown from 9.7% to 10.1% in March.

“Worsening sentiment regarding the prospects for the UK economy and uncertainty ahead of the European referendum in June could result in some softening in the housing market over the next couple of months.

“Current market conditions, however, remain very tight with an acute supply/demand imbalance continuing despite an improvement in the number of properties coming on to the market for sale in recent months. This, together with continuing low interest rates and a healthy labour market, indicate that house price growth is set to remain robust.”

Jeremy Leaf, former RICS chairman and north London estate agent, added:

"The peak of the housing market may have been reached, as far as prices are concerned, or very close to it. Demand from landlords and second homeowners keen to complete before the April stamp duty hike has now fallen away so it will be interesting to see what April’s house price index reveals. However, we don’t expect prices to fall by as much as some predict because of the number of first-time buyers in the market taking advantage of low interest rates."

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