Property Values Still Up from Last Year
Halifax house price index: Property values are stagnent – yet Property Values Still Up from Last Year Halifax released their house price index for June 2017, and their results show house prices are dropping. However they are still higher than at the same time last year. House prices in the three months to June were 2.6 per cent higher than in the same period of 2016. But despite this positive outlook, the figures were still 0.1 per cent lower than in the preceding quarter. This is nine per cent above the August 2007 peak, showing the long-term trend is still upwards. Martin Ellis, Halifax housing economist, said: “House prices have flattened over the past three months. “Overall, prices in the three months to June were marginally lower than in the preceding three months. The annual rate of growth has fallen, to 2.6 per cent; the lowest rate since May 2013. “Although employment levels continue to rise, household finances face increasing pressure as consumer prices grow faster than wages. “This, combined the new stamp duty on buy to let and second homes in 2016; appears to have weakened housing demand in recent months. “A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale should help continue to underpin house prices over the coming months.”
The Market Demise being Exaggerated
Commenting on the report Russell Quirk, Founder and CEO of eMoov.co.uk, said; “Contrasting figures from Halifax after Nationwide reported signs of a pulse returning to the UK property market, but given both sets of numbers. Reports of a market demise have clearly been exaggerated. “Despite the recent claims the market is due to see a notable crash with prices falling by as much as 40 per cent, this remains very unlikely. “The market is not dead or running on the life support of easily obtained credit and has suffered more of a grazed knee than a fatal injury. “A momentary blip is certainly not substantial enough to label as a trend and those that have, are doing so prematurely. “Resilient levels of buyer demand, heightened by a paltry supply of stock and coupled with historically low interest rates; will continue to fuel house price growth in the medium and long term.” Some experts saw the increasing rise in the cost of housing as a major problem. Jeremy Duncombe, Director of Legal & General Mortgage Club, said: “First-time buyers are now having to save nearly £33,000 for a deposit according to the Halifax, and today’s House Price Index shows why that’s the case. “Whilst demonstrating our market’s resilience during times of uncertainty, house prices are continuing to increase year-on-year and at a rate that is well above any wage increase. In London, some first-time buyers are having to fork up over £100,000 for a deposit – that is not acceptable.
Homeowners now turning to Rented Accommodation
“Many would-be homeowners are now turning to the private rental sector to find more affordable accommodation. Nearly a quarter of households are set to be owned by private landlords by 2021. “The lack of affordable housing is a problem that will only worsen if the Government doesn’t implement the revolution in housing policy it previously promised. The country needs housebuilding, whether that be for prospective homeowners or renters.” Click Here to See the Latest UK Property News
