Halifax House Price Index flat but still up 1.6% on the year

Halifax House Price Index flat but still up 1.6% on the year

9:18 AM, 5th July 2024, About 3 months ago

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The Latest Halifax House Price Index for June seems to have flatlined with a small 0.2% decrease on the month, but still 1.6% up overall on the year.

The average house price for the UK now stands at £288,455 compared to £288,931 in May.

Across the nation, Northern Ireland performed the strongest with annual growth at 4.0% up from 3.3% in May and an average house price of  £192,457. Scotland showed an annual increase aligned with the average at 1.6% with an average house price of £204,663 with the Welsh housing market perming above average at 2.7% yearly growth and a £220,197 price mean.

The East of England was the only region to record a yearly average decrease of -0.9%. London underperformed against the average increase at 0.9%, but with the obvious highest average house price at £536,306.

Continued stability in house prices

Amanda Bryden, Head of Mortgages, Halifax, said: “UK house prices stayed relatively flat for the third successive month in June, with the slight fall equivalent to less than £500 in cash terms. On an annual basis, house prices posted a seventh consecutive month of year-on-year growth, with the average UK property value now standing at £288,455.

“This continued stability in house prices – rising by just +0.4% so far this year – reflects a market that remains subdued, though overall activity has been recovering. For now it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices.

“Mortgage affordability is still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals. This issue is likely to be eased gradually, through a combination of lower
interest rates, rising incomes, and more restrained growth in house prices.

“While in the short-term the housing market is delicately balanced and sensitive to the pace of change to Base Rate, based on our current expectations property prices are likely to rise modestly through the rest of this year and into 2025.”


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