House Price Growth Slow, But Demand is Still Surging
House price growth is slowing down, reveals the latest Halifax House Price Index.
Property prices were 8.6% higher in the three months to September than in the same period in 2014. This is down on the 9% annual rise recorded in the three months to August.
The data also shows that in the three months to September, prices increased by 2% compared to the previous three months, down from the 3% growth witnessed in the three months to August.
Between August and September, prices dropped, with the average home now costing £202,859, down from £204,722.
However, Housing Economist at the Halifax, Martin Ellis, sees no reason for house price rises to continue slowing.
He explains: “Housing demand has been strengthening recently, underpinned by economic growth, rising real earnings and very low mortgage rates.
“Increasing demand is combining with very low growth. There is little reason to expect any fundamental shift in the key market drivers over the coming months.”1