The latest House Price Index from Halifax has shown that house prices in the latest three months (September-November 2014) were 0.7% higher than in the previous three months. This quarterly rate was marginally down from 0.9% in the previous month.
The Index also revealed that prices in the three months to November were 8.2% higher than in the same three months a year earlier. On this measure, annual house prices are now growing at their slowest rate since February.
Other key facts revealed by the Index include:
- Home sales fell below 100,000 in October - to 98,490 - for the first time in 2014. Nonetheless, current estimates suggest that housing transactions in 2014 will total in excess of one million for the second consecutive year. This is the first time since 2006 and 2007 that home sales have exceeded one million in successive years
- The volume of mortgage approvals for house purchases – a leading indicator of completed house sales – fell in October, to 59,426. Approvals have now fallen by 22% from 76,574 in January 2014.
- Private housing completions in the first three quarters of 2014 were 10% higher compared with the same period in 2013, at 68,930.
"Receding buyer interest combined with a revival in private housing completions has brought supply and demand into better balance,” commented Martin Ellis, housing economist. “These factors have in turn contributed to the easing in house price growth since the summer.”
“But housing demand continues to be supported by a strengthening economy, rising employment levels, still low mortgage rates and the first gain in ‘real’ earnings for several years,” he added. “We expect a further moderation in house price growth over the next year with prices nationally expected to increase in a range of 3-5% in 2015."
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