Halifax had conducted research into the annual rate of house price growth and the latest analysis reveals a lot of information about house price growth rate. This rate of growth had fallen from 2.5% in September to 1.5% in October, which is the lowest rate of annual house price growth since March 2013. Despite this fall in annual growth, it still remains to be within the Lender’s forecast annual growth range of 0-3% for 2018. The prices continue to be reinforced by the low supply of new homes and existing homes available for sale. There is also further support for the house prices, such as the already high and improving employment rate and the historically low mortgage rates, which are enabling higher rates of comparative affordability. Halifax remains to be supportive of their 0-3% forecast range and they see this to be continuing to be the case for the coming months.
In the three months to September, the HMRC had highlighted that the sales were unchanged from the last three months. The residential transaction volume has been generally flat over the past year and this is likely to remain that way over the coming months. According to industry-wide figures from the Bank of England, the number of mortgages that were approved to finance property purchases had fallen by 1.3% month on month to 65,269 in September.
Lastly, the respondents to the Royal Institute of Chartered Surveyors’ monthly UK residential market survey had continued to mention the combination of affordability restrictions, economic uncertainty, a lack of stock, and the rises in interest rates that are holding back activity to a certain degree. The absence of new instructions coming to the market continues to hinder activity and the new instructions had fallen for the second consecutive month.
About the Author
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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