Annual house price growth eases to 8.4%

Annual house price growth eases to 8.4%

House prices in the last three months were 1.2 per cent higher than in the preceding three months, according to Halfax’s latest index.

This was slightly below May’s 1.5 per cent increase and was the lowest increase on this basis since December 2014 (1 per cent).

Prices in the three months to June were 8.4 per cent higher than in the same three months of 2015. This was down from 9.2 per cent in May and was the lowest since July last year (7.8 per cent).

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UK house pricesJune 2016 (seasonally adjusted)
Annual change+8.4%
Quarterly change+1.2%
Monthly change+1.3%
Average price£216,823

Martin Ellis, Halifax’s housing economist, said there was evidence the underlying pace of house growth may be easing.

“House prices continue to increase, albeit at a slower rate, but this precedes the EU referendum result, therefore it is far too early to determine any impact since,” he commented.

House prices increased by 1.3 per cent between May and June, following a 0.9 per cent rise in May.

Halifax noted month-on-month changes can be erratic and the quarter-on-quarter change is a more reliable indicator of the underlying trend.

Mark Harris, chief executive of mortgage broker SPF Private Clients, pointed out swap rates have plummeted since the referendum, leading to a number of lenders slashing already-cheap mortgage rates further still.

“There has never been a better time to take out a fixed rate with buyers and those remortgaging who are looking for some security in these uncertain times, spoilt for choice,” he stated.

“Lenders are behind on where they want to be business-wise so we expect to continue to see a flurry of attractive rates over the summer.”