UK house prices are showing signs of recovery amidst ongoing political uncertainty, with several factors supporting the property market, including a slight increase in mortgage approvals and modest wage rises.
As the latest Halifax House Price Index figures show, UK house prices have grown by 0.9 per cent between October 2018 and October 2019, with the average house price now standing at £232,249. While house prices fell by a small 0.1 per cent over the past month, they do show a quarterly rise of 0.2 per cent.
The even better news for both home owners and those intending to sell is the increased number of property transactions in September – up by 5 per cent, which is the highest level of transactions since August 2017.
However, the figures are also showing that fewer and fewer houses are being put up for sale – likely the consequence of Brexit, the election and, of course the time of year. In fact, the level of new instructions for sale is now the lowest since June 2016, with seller anxiety matching that of the immediate post-Brexit months. Buyer demand is also declining, although not as fast as the supply of housing (15 per cent vs. 37 per cent).
Russell Galley, Managing Director of Halifax, says, 'Average house prices continued to slow in October, with a modest rise of 0.9 per cent over the past year. While this is the lowest growth seen in 2019, it again extends the largely flat trend which has taken hold over recent months.
'A number of underlying factors such as mortgage affordability and wage growth continue to support prices, however there is evidence of consumers erring on the side of caution.
'We remain unchanged from our view that activity levels and price growth will remain subdued while the UK navigates political and economic uncertainty.'