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Halifax: Marginal Decrease in Monthly House Price Growth

The average property price of a UK home rose to £220,260 in January, slipping just 0.9% from the previous month, reveals Halifax.

The average property price of a UK home rose to £220,260 in January, slipping just 0.9% from the previous month, reveals Halifax.

New figures released by building society and mortgage lender, Halifax, showed that house prices in the UK were 2.4% higher in the last quarter than in the preceding one.


As quarterly figures for the three months to January are seasonally adjusted, they provide a clearer picture of market trends, said Halifax.


Annually, prices in the three months to January were 5.7% higher than in the same three months a year earlier – a slight ease from December’s rate of growth of 6.5%.


Following two consecutive monthly increases, prices in January also slipped 0.9% from December, marking the first monthly fall since August 2016.


Commenting on January’s house price index, Martin Ellis, Halifax housing economist, said:


“House prices in the three months to January were 2.4% higher than in the previous quarter; marginally down on 2.5% in December. The annual rate of growth eased to 5.7% from December’s 6.5%, and is well below last March’s peak of 10.0%.


“The quarterly and annual rates of house price growth remain robust even though they are lower than in spring 2016. UK house prices continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding, and exceptionally low interest rates.


"These factors are unlikely to change materially during 2017. Nonetheless, weaker economic growth and increasing pressure on spending power, along with affordability constraints, are expected to dampen housing demand, resulting in some downward pressure on annual house price growth during the year.”


In contrast, earlier this month, figures published by mortgage lender Nationwide revealed that property values have remained steady in January, reaching a new average of £205,240.

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