According to the latest figures from Halifax, house price growth has fallen to the lowest it has been in five years. This comes after growth fell from 2.5% in September, to 1.5% in October. Figures from Halifax indicate that in October, house prices rose marginally by 0.7%, after two monthly falls. The average price of a house in the UK currently sits at £227,896.
The managing director of Halifax, Russell Galley said that “The annual rate of house price growth has fallen from 2.5% in September to 1.5% in October, which is the lowest rate of annual growth since March 2013. However, this remains within our forecast annual growth range of 0% to 3% for 2018.” Halifax is standing by their original forecast of 0-3%.
The figures from Halifax are supported by those released from Nationwide that show growth has fallen from 2% in September, to 1.6% in October. The figures are not entirely based on the same things as Halifax based their home price index on homes bought with mortgages. This does not include council house sales, shared ownership and help-to-buy schemes. Nationwide, on the other hand, has based theirs on owner-occupied house purchase transactions involving a mortgage.
Halifax has also said that the amount of residential transactions has been quite flat over the last year, and we are not likely to see this change any time soon.
The housing market in the UK has been on a steady decline since the Brexit referendum of 2016. There were economists who estimated that growth would flatline in 2018. However, it has remained in the 1.3% range for the past 12 months.