The average house price fell by 0.1% month-on-month in September to £293,835, says Halifax
House prices fall slightly as market shows further signs of slowing, but important to look at slower growth in context - Halifax
‘Important to look at slower growth in context’
The average house price fell by 0.1% month-on-month in September to £293,835, says Halifax.
Halifax reports that the pace of annual house price growth slowed for the third consecutive month in September, from 11.4% to 9.9%.
‘Look at rise in property prices since start of pandemic’
Director of Halifax Mortgages Kim Kinnaird does, however, say that it’s important to look at the slower growth in context, looking at the rise in property values since the start of the pandemic: property values have gone up around +23% (almost £55,000) with detached house prices up by more than £100,000.
Kim Kinnaird, Director of Halifax Mortgages, said: “The average UK house price experienced a slight fall in September (-0.1%), the second marginal decrease over the past three months. The cost of a typical home edged down a little to £293,835 from the previous month’s record high (£293,992). The pace of annual growth also slowed for the third month in a row, to +9.9% from +11.4%, returning to single-digits for the first time since January.
“The events of the last few weeks have led to greater economic uncertainty, however in reality house prices have been largely flat since June, up by around £250. This compares to a rise of more than £10,000 during the previous quarter, suggesting the housing market may have already entered a more sustained period of slower growth.
‘Housing market consistently defied expectations’
“Predicting what happens next means making sense of the many variables now at play, and the housing market has consistently defied expectations in recent times. While stamp duty cuts, the short supply of homes for sale and a strong labour market all support house prices, the prospect of interest rates continuing to rise sharply amid the cost of living squeeze, plus the impact in recent weeks of higher mortgage borrowing costs on affordability, are likely to exert more significant downward pressure on house prices in the months ahead.
‘Unprecedented rate of property price inflation in recent years’
“This will undoubtedly be a cause of some concern for homeowners, but the unprecedented rate of property price inflation we’ve seen in recent years has been far above the historic average. It’s important to look at slower growth in this context – since the start of the pandemic average property values have risen by around +23% (almost £55,000) with detached house prices up by more than £100,000 over the same period.”
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