UK House Prices Drop for First Time Since June, Says Halifax
UK house prices fell in December 2017, according to the latest Halifax House Price Index. This is the market’s first decline in six months.
The average price of a home in December 2017 was £225,021 – down 0.6% month on month.
A squeeze on real wage growth and continuing uncertainty over the economy are thought to be key drivers in the decline, with some forecasters predicting the property market will slow further in 2018.
House Prices Set for Growth in 2018
Halifax Community Bank’s managing director, Russell Galley, acknowledged that the annual rate of growth has moderated to 2.7% from November’s 3.9%, but expects annual price growth to continue in the range of 0-3% at the end of 2018.
“As we’d anticipated, the housing market in 2017 followed a similar pattern to the previous year. House price growth slowed, while building activity, completed sales and mortgage approvals for house purchase all remained flat,” said Galley.
“However, nationally house prices in 2018 are likely to be supported by the ongoing shortage of properties for sale, low levels of housebuilding, high employment and a continuation of low interest rates making mortgage servicing affordable in relative terms.”
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