Halifax have released a report revealing UK house prices went up by 0.4% in March on the previous month. However, the report also stated that the annual rate for the growth of property price has slackened.
It was shown that property prices in March were 8.1% greater than they were compared to March 2014. This is slightly less than the 8.3% annual price growth rate in the year to February 2015.
Halifax, who operate within the larger Lloyds Banking Group, stipulated that the growth in earnings and relatively low rates in mortgage lending were responsible for the continued demand for property.
Martin Ellis, who works at Halifax as the housing economist expert, argues that the growth in house prices in Britain would slow as the year goes on. Mr Ellis argued that this was down to fact that wage growth would continue at a low rate throughout the year.
Halifax have offered up a prediction that the annual rate for house price growth would fall between 3% and 5% at the end of 2015. The prediction is based on the data Halifax gathers from their mortgage lending activity.
Despite the reduction in the rate of price growth, the statistics reveal that property in the United Kingdom is likely to become more and more expensive, meaning many people, especially first-time buyers are going to find it hard to get on the property ladder. Halifax also stated the average property price in the United Kingdom was £192,970.
Usually, during this part of the year, there is what the industry refers to as a “spring bounce” in Britain’s housing market. This is where activity increases as a result of the longer days and more potential customers being able to view properties. However, a number of analysts have suggested that this effect will be outweighed by the uncertainty caused by the general election, putting many potential buyers off committing to any deal until after the results are in.
The report from Halifax echoes a lot of other analysis of the housing market in recent times. Last week, the Bank of England released data gathered on various lending firms, showing that in the first quarter of 2015, the demand for mortgage loans had slowed down. This observation was particularly pronounced in mortgages for properties of high-value.
Further to this, Nationwide Building Society released a survey that publicised a trend of slowing growth in United Kingdom house prices. The report detailed the fact that the house price growth rate had been decelerating for seven months in a row.