Biggest slowdown in UK house price growth
In the year 2017, the house prices increased much more slowly than in the year 2016, as reported by the UK’s largest mortgage lender.
The Halifax revealed that prices grew by nearly 2.7 percent last year as compared with a 6.5 percent growth in 2016. Based on the calendar year, that is the lowest growth since the year 2012.
The massive slowdown in the house price growth was driven by a squeeze on the real growth as well as the steady uncertainty over the economy, said by Halifax. But at the end of the year, the average house prices all over the UK were reported as £225,021.
Halifax said that sharp slowdown in house price growth
The Halifax research provides last week’s reports across the nation, which largely recommended that the house prices rose by 2.6% in previous year. But during the month of December, the Halifax told that the home prices actually slowdown by 0.6 % which was considered to be first monthly decline since month of June 2017.
However, the Halifax positively expects that the house prices would show continues rising in 2018.
The managing director of Halifax Community Bank, Russell Galley claimed that, “Nationwide house prices in 2018 are expected to be supported by the recent shortage of properties for sales, high employment, a low interest rates and low levels of house buildings making mortgage servicing reasonable in relative terms.”
“At the end of 2018, we expect annual price growth to continue in the range of 0 to 3 %” he said.
The Chief UK economist at Pantheon Macroeconomics, Samuel Tombs said that because of the gradual rise in mortgage rates, the price growth of houses was slowing. Since the month of September, the cost average fixed rate mortgage has increased by between 0.1 % & 0.2 %.
He further added that, “Halifax data indicate that the ongoing jump in the rates of new mortgage has surged cold water on a market which already was identifying.”