Taylor Scott International News
House prices in the UK in the three months to February were 3% higher than in the previous three months whilst the annual rate remained unchanged at 9.7%, the latest index shows. But month on month prices fell by 1.4%, according to the data from the Halifax, taking the average price of a home to £209,495. Martin Ellis, Halifax housing economist pointed out that overall prices continue to rise at a robust pace driven by a significant imbalance between supply and demand. ‘Whilst this position is likely to continue over the coming months, there are some tentative signs that the supply situation may be beginning to improve,’ he explained. He also pointed out that instructions for second hand properties coming up for sale have increased in the past two months and the level of house building increased significantly in 2015. ‘Further ahead, increasing affordability issues, as house price increases continue to exceed wage growth, are likely to curb housing demand and cause price growth to ease,’ he added. An analysis of the Halifax figures shows that the quarterly rate of change was the highest since June 2015 when it was 3.3% and the annual rate remains within the 8% to 10% range where it has been for nearly the entire period since the start of 2015. The fall in values in February offset much of January’s 1.7% rise but Ellis explained that monthly house price changes can be volatile and the quarter on quarter change is a more reliable indicator of the underlying trend. The increase in average house prices has exceeded total average employee’s net earnings in 28% of local authority districts across the UK, some 108 out of 380, over the past two years, according to recent Halifax research. According to Russell Quirk, chief executive officer of eMoov, the monthly figures could be seen as a sign that the UK market is cooling but the longer term trend is still upward. ‘Demand is always an influential factor where an increase in house prices is concerned, so the impending stamp duty changes due in April have no doubt helped to keep the UK market buoyant,’ he said. ‘There has been a flurry of buyers keen to secure that second home or buy to let investment before the April deadline, as well as an increase in the stock available, due to savvy buyers looking to cash in and obtain a higher price than usual during this period of high demand,’ he pointed out. ‘We expect once the stamp duty dust has settled the market will cool slightly, but whilst UK and foreign buyers are still fuelling this increase, the issue of affordability will continue to take a back seat, rather than helping to restrain a continually inflating market,’ he added. Taylor Scott International
Taylor Scott International, Taylor Scott
