House prices in the three months to March were 10.1 per cent higher than in the same three months a year earlier, according to Halifax’s latest figures.
During the first quarter of this year, prices were 2.9 per cent higher than in the preceding three months, with the average reaching £214,811 last month.
UK House prices | March 2016 (seasonally adjusted) |
| Annual change | +10.1% |
| Quarterly change | +2.9% |
| Monthly change | +2.6% |
| Average Price | £214,811 |
Martin Ellis, Halifax’s housing economist, said 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.
He said: “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.”
Meanwhile, the volume of mortgage approvals for house purchases – a leading indicator of completed house sales – fell by just 0.3 per cent between January and February.
Nonetheless, Halifax pointed out that approvals in the three months from December to February were 4 per cent higher than in the previous three months and 19 per cent up on the same period a year earlier, according to the Bank of England’s latest statistics.
Mark Harris, chief executive of mortgage broker SPF Private Clients, commented that continued low mortgage rates and the easing of criteria by a number of lenders are attracting buyers who remain confident that interest rates are not going to rise anytime soon.
“However, affordability remains an issue for some, and with Virgin Money reducing its maximum income multiples this week, it certainly isn’t a free-for-all on the lending front.”
peter.walker@ft.com
