Recent data has shown that the growth of house prices across the United Kingdom has started to slow down to possibly indicate a cooldown in the market.
According to banking firm Halifax, house prices in the three month period that ended in August were 9.7% higher compared to the same period in 2013. In the previous month of July, the difference was 10.2%. Taken by quarter, prices from the three month period were only 3% higher than the previous months, down from the 3.5% statistic last month.
Lower growth in prices is expected to be treated as good news by policymakers from the Bank of England (BoE) who earlier said that a rapidly accelerating housing market risks upsetting the UK’s financial stability.
Outlook for houses to further cool down was shared by consultancy firm Capital Economics’ property economist, Matthew Pointon who described current prices as already too much for buyers. He said that, “With home values already at a very high level and buyers now refusing, or unable, to stretch themselves much further, gains will be much more modest than those seen over the past 18 months.”
Pointon’s statement was echoed by the results of the RICS survey which reported a decline in buyer interest for the past several months alongside a 20% drop in mortgage approvals between January and May this year.
Halifax’ housing economist Martin Ellis believes that the possibility of an early increase in interest rates by the BoE should also curb demand in addition to workers’ wages across the region still falling below inflation. He said that, “There are some signs of an improvement in housing supply, both in terms of more second-hand properties coming on to the market and increased numbers of new homes. These trends, if sustained, should help to improve the balance between supply and demand, contributing to an easing in the pace of house price growth.”
The material has been provided by InstaForex Company – www.instaforex.com
Recent data has shown that the growth of house prices across the United Kingdom has started to slow down to possibly indicate a cooldown in the market.
According to banking firm Halifax, house prices in the three month period that ended in August were 9.7% higher compared to the same period in 2013. In the previous month of July, the difference was 10.2%. Taken by quarter, prices from the three month period were only 3% higher than the previous months, down from the 3.5% statistic last month.
Lower growth in prices is expected to be treated as good news by policymakers from the Bank of England (BoE) who earlier said that a rapidly accelerating housing market risks upsetting the UK’s financial stability.
Outlook for houses to further cool down was shared by consultancy firm Capital Economics’ property economist, Matthew Pointon who described current prices as already too much for buyers. He said that, “With home values already at a very high level and buyers now refusing, or unable, to stretch themselves much further, gains will be much more modest than those seen over the past 18 months.”
Pointon’s statement was echoed by the results of the RICS survey which reported a decline in buyer interest for the past several months alongside a 20% drop in mortgage approvals between January and May this year.
Halifax’ housing economist Martin Ellis believes that the possibility of an early increase in interest rates by the BoE should also curb demand in addition to workers’ wages across the region still falling below inflation. He said that, “There are some signs of an improvement in housing supply, both in terms of more second-hand properties coming on to the market and increased numbers of new homes. These trends, if sustained, should help to improve the balance between supply and demand, contributing to an easing in the pace of house price growth.”
The material has been provided by InstaForex Company – www.instaforex.com
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