You are here: Home - Investing -

Regional housing growth to overtake London in 2015 – Halifax

Written by:
Global economic worries could reduce demand and activity at the top end of the London market in 2015, leaving more concentrated house price growth in the regions next year, said the Halifax.
Regional housing growth to overtake London in 2015 – Halifax

Tight affordability and global economic fears mean house price growth in London and to a lesser extent the South East is unlikely to replicate this year’s frenzied house price growth in 2015.

Halifax’s housing economist, Martin Ellis, (pictured) said: “Outside London and the South East, house prices do not appear markedly out of line with fundamentals. We, therefore, expect to see a more even, regional pattern in house price growth during 2015.”

He added:”The fortunes of the housing market are closely tied to developments in the wider economy. The strengthening in the UK economy has contributed to higher housing demand over the past 18-24 months.”

Ellis said higher house prices, tighter mortgage rules, low earnings growth and talk of an interest rate rise have all combined to temper housing demand since the summer.

Annual price growth in the three months to October slowed to 8.8 per cnet from 9.6 per centin September this year.

Mortgage approvals in September fell for the third successive month to a 14-month low, whilst home sales are at their lowest level since October 2013.

The prospect of higher interest rates at some point next year and the deterioration in affordability over the past year are expected to be key factors curbing housing demand.

The lender predicts house price inflation will hit 3 to 5 per cent next year.

“Annual house price inflation is expected to have peaked at around 10 per cent in July 2014. A further moderation in house price growth is likely in 2015 as supply and demand become increasingly better balanced,” said Ellis.

Tag Box

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

Read previous post:
Over 40s face ‘unjustified’ discrimination in mortgage market

Freezing the over 40s out of the housing market is another example of unjustified age discrimination. according to Paul Green...