Halifax figures confirm UK house price slowdown

The latest Halifax house price figures show that growth is continuing to slow, according to Best Advice.

In the three months leading to February 2018, prices were 1.8% higher than the three months leading to February 2017. This is slower than the annual growth of 2.2% recorded in January 2018.

House prices in December – February were 0.7% lower than in the preceding three months and prices grew only 0.4% on a monthly basis in February, after two consecutive monthly declines.

Managing Director of Halifax Russell Galley said: “House prices continue to remain broadly flat, as they have since the end of last year. The annual rate of growth has slowed from 2.2% in January to 1.8% in February, the lowest rate of growth since March 2013.

“The labour market continues to perform strongly with the number of people in employment rising by 88,000 in the three months to December. Notably, this is almost entirely accounted for by full-time jobs. The strength of the jobs market may finally be benefitting wage growth, with the annual growth rate accelerating from 2.3% in November to 2.8% in December. However, earnings are rising at a slower rate than consumer prices.

“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.”