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Halifax: House Prices Up by 7% Year-on-Year

Property prices have risen by 6.9% over the last year, but growth is beginning to steady according to the latest report from Halifax.

7% Year-on-Year Growth in House Prices August 2016

Property prices have risen by 6.9% over the last year, but growth is beginning to steady according to the latest report from Halifax.

The mortgage lender found that the average property price has risen from an average of £205,593 in the three months to August 2015, to £213,930 in August 2016.


Whilst the annual figures mark an increase in property values, August’s value is down from the 8.4% annual increase seen in both June and July this year, indicating that house price growth may be slowing.


Similarly, there was a 0.7% increase in August on the previous three months (March to May). However, this value is also a decrease on July’s figures, where there was growth of 1.5% on the previous three months.


The month-on-month figures also show a 0.2 decline in the value of properties in the UK. While this figure is indicative of a decrease, the rate has slowed from July, where property values fell by 1.1%.


Within its comments on the index, Halifax was keen to stress the importance of relying on the quarterly figures as a far more reliable indicator of underlying trends, as opposed to the monthly figures.


Halifax’s index stands in contrast to the figures released by Nationwide last week, which indicated that there had been a post-Brexit boost over the course of August, with property values increasing by 0.6%.


Martin Ellis, housing economist for Halifax, commented: ‘House price growth continued the trend of the past few months in August with a further moderation in both the annual and quarterly rates of increase. There are also signs of a softening in sales activity.


‘The slowdown in the rate of house price growth is consistent with the forecast that we made at the end of 2015. Increasing difficulties in purchasing a home as house prices continued to increase more quickly than earnings were expected to constrain demand, curbing house price growth.’


The introduction of the new Stamp Duty land tax for second homes and investments, the traditional seasonal dip in interest over the course of the summer, and Brexit have all been suggested by market commentators as reasons behind any potential slowdown in the market.

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