You are here: Home - Mortgages - Buy To Let - News -

House price growth continues to slow

Written by: John Fitzsimons
Annual house price growth has dropped to a rate of just 3.3%, according to the latest Halifax house price index.

Prices increased by 0.4% in May according to Halifax, to take the average house price to £220,706. However, over the quarter prices have fallen by 0.2%, while annual house price growth is now markedly lower than the 10% rate seen in March last year.

Martin Ellis, housing economist at Halifax, said: “The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, is likely to support house price levels over the coming months.”

Jeremy Duncombe, director of Legal & General Mortgage Club pointed out that even at this slower rate of growth, house prices remain “staggeringly high” across much of the country.

He said: “The only way to help struggling potential buyers to purchase their first home is to build more houses in key areas. We need a realistic, deliverable plan, that will give this country the injection of new homes it needs to expand the market and make homeownership more accessible to all those who desire it.”


Jonathan Hopper, managing director of Garrington Property Finders, said the gap between house price growth and wage growth was “unsustainable” and so it was inevitable that price growth would ease, particularly in areas where they had risen fastest.

He added: “Election uncertainty is far from the only issue facing the property market, but if Friday morning brings a clear result there’s a good chance the market will ease past its current speed bump. A dose of clarity is what is needed to free up more supply and spur discretionary buyers back into action.”

Russell Quirk, CEO and founder of online estate agent eMoov, said the recent unpredictability of house prices was a reflection of the “turbulent landscape” of both the UK property market and the wider economy have had to traverse over the last year.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
buying a house
I’m a first-time buyer. Should I open a cash Lifetime ISA?

The first cash version of the government's new Lifetime ISA, designed to help people buying a first home, launches this...