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Strong December pushes 2019’s house price growth to 4%

Joanna Faith
Written By:
Joanna Faith

Last year ended on a high for property prices, but what does 2020 have in store?

Property prices rose by a significant 1.7% in December, the strongest month of the whole year, according to Halifax.

This took the average price of a UK home to £238,963, which was 4% up on December 2018.

However, the lender noted that the strong growth not only reflected that December had been a particularly strong month, but also that it was being compared to a weak December in 2018.

Russell Galley, managing director of Halifax, said: “Looking ahead, we expect uncertainty in the economy to ease somewhat in 2020, which should see transaction volumes increase and further price growth made possible by an improvement in households’ real incomes.

“Longer-term issues such as the shortage of homes for sale and low levels of house-building will continue to limit supply, while the ongoing challenges faced by prospective buyers in raising deposits will serve to constrain demand. As a result, we expect a modest pace of gains to continue into next year.”

Jonathan Hopper, managing director of Garrington Property Finders, added: “This Halifax snapshot of prices gives the clearest sign yet of a market accelerating back towards normality.

“With the Government determined to limit talk of Brexit to its negotiations in Brussels meeting rooms, the abrupt easing of Britain’s political uncertainty is set to usher in a more free-flowing property market, simultaneously boosting both demand and supply.

“While this is likely to nudge the pace of price growth back up, the dust still needs to settle before real clarity returns. For many buyers and sellers, confidence is battered, but coming back at last.”