Halifax Price Index shows 6.5% annual house price growth

The latest Halifax House Price Index shows prices in the Quarter to December 2016 were 6.5% higher than in the same three months of 2015.

In December 2016 the annual change was +6.5%, quarterly change +2.5%, monthly change 1.7% and the new average house price stood at £222,484

Martin Ellis, Halifax housing economist, said “House prices finished 2016 strongly. Prices in the final quarter of the year were 2.5% higher than in the previous quarter. The annual rate of growth increased, rising for the second consecutive month, from 6.0% in November to 6.5%.

“Slower economic growth, pressure on employment and a squeeze on spending power, together with affordability constraints, are expected to reduce housing demand during 2017. UK house prices should, however, continue to be supported by an ongoing shortage of property for sale, low levels of house building, and exceptionally low interest rates. Overall, annual house price growth nationally is most likely expected to slow to 1-4% by the end of 2017. The relatively wide range for the forecast reflects the higher than normal degree of uncertainty regarding the prospects for the UK economy this
year.”

The Halifax report also comments on housing activity below:

Total UK home sales in 2016 set to be broadly unchanged from 2015 and 2014 at 1.2 million. Sales have largely stabilised since the middle of 2016 with a 1% increase between October and November. Sales in the three months from September to November were, however, 9% lower than in the same period last year.