House prices: Halifax have released their property price index
House prices are one of the most talked-about topics of modern day – could a market correction be on the horizon?
The Halifax House Price Index has been issued today and the report reveals there is no current need for concern for UK home owners. This is because there “an ongoing shortage of properties for sale” which should help continue to support house prices over the coming months. This is partly due a slow-down in housebuilding thanks to rumours Help to Buy is set to be cut.
House prices over May to July were 0.2 per cent lower than in the previous three months (February-April). This was the fourth successive quarterly fall; the first time this has happened since November 2012.
However, prices in the three months to July were 2.1 per cent higher than in the same three months a year earlier. House prices rose by 0.4 per cent between June and July, partially offsetting the 0.9 per cent decline recorded between May and June.
Brian Murphy, Head of Lending for Mortgage Advice Bureau told Express.co.uk: “The data from the Halifax this morning reports that annual house price growth stood at 2.1% in July, with a slight increase (0.4%) on the previous month.
House prices remain buoyant but expert warns of market correction
“This points to the fact that house price growth is continuing in line with expectations.”
He explained consumer confidence in property is still strong and demand for housing is “very much still in evidence”.
Murphy added: “Given that prices are now reaching all-time highs, a subdued level of house price growth for the rest of 2017 may not be such a bad thing; we don’t need prices to run out of control to the extent that it triggers a market correction…
“…and prices do need to remain at a level whereby First Time Buyers, who underpin the rest of the market, are able to afford to purchase in order to ensure that the rest of the property market ecosystem continues to function.”