Halifax House Price Index up 4.1% on last year

by Property118.com News Team

15:01 PM, 7th February 2020
About 10 months ago

Halifax House Price Index up 4.1% on last year

Make Text Bigger
Halifax House Price Index up 4.1% on last year

Surprisingly after all the instability last year the Halifax House Price index is showing growth of 4.1% on January 2019 with the overall average house priced at £240,054.

On a monthly basis, house prices rose by 0.4% and in the latest quarter (November to January) house prices were 2.3% higher than in the preceding three months.

Russell Galley, Managing Director, Halifax, said: “House prices kicked off the year with a modest monthly increase, rising by 0.4% in January following the stronger gains of 1.8% and 1.2% seen in December and November respectively.

“As a result, annual growth remained relatively stable at 4.1%, up just a fraction from the end of 2019.“A number of important market indicators continue to show signs of improvement.

“We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy. However, it’s too early to say if a corner has been turned.

“The recent positive figures may actually represent activity that would ordinarily have been expected to take place last year, but was delayed by economic uncertainty. So while housing market activity has undoubtedly increased over recent months, the extent to which this persists will be driven by housing policy, the wider political environment and trends in the economy.

“Looking ahead, we still expect a moderate rate of house price growth over the course of the year. Demand is likely to continue to exceed the supply of properties for sale across the UK, with the subdued pace of new building also adding to upwards price pressure. The environment for mortgage affordability should stay largely favourable. However with the growth in rental costs accelerating, many first-time buyers will continue to face a significant challenge in raising necessary deposits.”


Share this article

Twitter Facebook LinkedIn

Comments

David Lawrenson

9:07 AM, 11th February 2020
About 10 months ago

What is also good news for landlords is that rent levels are also picking up nicely too - and most experts forecast rents rising ahead of general inflation over the next few years too.

The various tax assaults on landlords might be playing a major role here - constricting supply of rented properties as many of the more dabbling landlords decide it is not worth the effort anymore and are thus selling up.

To some extent, the worst ravages of the tax hikes can be avoided by investing through a company structure - at least for now.

The reality is that as taxes and regulations have increased, many landlords will take fright and exit, resulting in further rent rises.

The big fear then is that a far left government gets elected and seeks to impose the old chestnut of rent controls, (also the best way to destroy a city short of bombing it (Assar Linbeck)).

The good showing of Sinn Fein in Ireland - who are on a rent control ticket - will be a concern to landlords across the Irish Sea.

https://www.lettingfocus.com/blogs/2020/02/capital-gains-tax-in-30-days-for-landlords/

David Lawrenson
http://www.LettingFocus.com
Private Rented Sector Consultancy


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Property Investors Awards - Winners Announcement 2020

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More