House prices were up 1.4%, month-on-month for October 2016, according to the latest Halifax research. But the pace of yearly growth continued to slow, hitting 5.2% on 2015 as buyers continued to struggle with affordability, faced with expensive properties and record-low mortgage rates.
That’s a drop of nearly half on the pre-Brexit vote high of March, where inflation in the sales market was at 10%.
Martin Ellis, Halifax housing economist, said: ‘This expected slowdown appears to have been largely due to mounting affordability pressures, which have increasingly constrained housing demand.
‘Whilst house price growth may ease further in the coming months, very low mortgage rates and a shortage of properties available for sale should help support price levels."
Halifax said in October the average UK property was valued at £217,411 – an increase of nearly £3,000 on September.
However, Halifax isn’t the only spectator to notice a cooling in the market when a yearly measure is taken.
Nationwide’s recently released research put the rate of growth at 4.6% but it said prices had stalled in October, for the first time in 15 months. It warned the average home now cost more than six times the typical wage.
But not all commentators have been so bleak with Garrington Property Finders managing director happy to suggest things were “reviving surprising smoothly” following the EU referendum.
He said: “The two months of slipping average prices Halifax recorded in the immediate aftermath of the Brexit vote are receding fast as the market begins to pick up speed again. Buyer desire is back – and October’s 1.4% month-on-month jump in prices is the strongest surge seen since the pre-Stamp Duty spike.
“Reassured by a robust labour market and an economy that continues to grow buyers are instead focusing on the market’s strong fundamentals.”
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