MortgagesMar 7 2018

House prices stay flat

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House prices stay flat

House prices have started growing again but continue to remain broadly flat as annual growth reaches its lowest level in five years, according to Halifax's house price index.

The index found house prices rose by 0.4 per cent, following two consecutive months of slight decreases in December and January.

The average price of a house was £224,353, which is around £2,000 down on the record high seen in November.

The annual rate of growth has slowed from 2.2 per cent in January to 1.8 per cent in February, the lowest rate of growth since March 2013.

Russell Galley, managing director of Halifax Community Bank, said the market was being hampered by earnings rising at a slower rate than consumer prices.

He said: "Despite the November rise in the Bank of England Base Rate, mortgage rates continue to stay low by historical standards.

"While we expect price growth to remain low, the low mortgage rate environment, combined with an ongoing shortage of properties for sale, should continue to support house prices over the coming months."

Over the course of 2017, monthly house price growth only once went above 1 per cent and fell during three months.

Annual house price growth gradually fell over the course of last year from 5.1 per cent in February 2017.

Bank of England figures showed mortgage approvals for house purchases rose sharply in January, growing by 9.4 per cent month-on-month in January to 67,478.

But mortgage approvals in January were still 2.4 per cent lower than a year earlier after they fell sharply in December to their weakest level since 2015.

damian.fantato@ft.com