House price growth on steady downward trend

House price growth on steady downward trend

House prices in the three months to November were 0.8 per cent higher than in the previous three months, according to the Halifax House Price Index.

The annual rate of growth also increased, increasing for the first time for eight months, from 5.2 per cent in October to 6 per cent.

Martin Ellis, Halifax housing economist, said: “Despite November’s pick-up, the annual rate has been on a steady downward trend in recent months since reaching a peak of 10 per cent in March.

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“Heightened affordability pressures, resulting from a sustained period of house price growth in excess of earnings rises, appear to have dampened housing demand, contributing to the slowdown in house price inflation.

“Very low mortgage rates and an ongoing, and acute, shortage of properties available for sale should help support price levels although annual house price growth may slow over the coming months.”

Meanwhile home sales have steadied in recent months but are lower than a year ago, increasing by 1 per cent between September and October.

Sales during the three months from August to October were 8 per cent lower than in the same period last year.

The stock of homes available for sale fell in October; offsetting the previous month’s modest rise and taking the stock to its lowest ever recorded level.

But building completions and starts in England in the third quarter of 2016 were respectively 7 per cent and 9 per cent higher than in the third quarter of 2015.