Halifax Reports 5% Annual Rise in House Prices

The Halifax House Price Index has revealed that the average price is now £236,619.

- On a monthly basis, house prices rose by 1.1%, versus a fall of 1.3% March

- House prices in the three months to April were 5.0% higher than in the same three months a year earlier

- In the latest quarter (February to April) house prices were 4.2% higher than in the preceding three months (November to January). 

- In April 2009 average house prices were £154,663 - the low point following the 2008 financial crash. Since then we have seen an increase of £81,956, which reflects a 4.3% average annual increase.

The sharp 5% rise in April’s annual change figure comes against the backdrop of a particularly low growth rate over the corresponding period in 2018, impacting year-on-year comparisons. This also factors in a notably high growth figure recorded in February this year, driven by a higher volume of London sales and more expensive new build properties.

Russell Galley, Managing Director, Halifax, said:

“The average UK house price now stands at £236,619 following a 1.1% monthly rise in April, as demand and supply of housing remained subdued for another month. “The index has seen a weaker pace of growth over the last three years, which is consistent with the easing of transactions volumes and housing market activity reflected in RICS, Bank of England and HMRC figures. “Looking further back, this April also marks 10 years since the lowest point of the Halifax house price index following the financial crash in 2008. Over the past decade, annual house price growth has seen the average price increase by £81,956 or an average rise of 4.3% each year.”

Commentary

Director of Benham and Reeves, Marc von Grundherr, commented:

“Positive reading for the UK market and while a slightly erratic rate of annual growth may not be proof that we are out of the woods just yet, it certainly does demonstrate the much healthier position we find ourselves in now when compared to this time last year.

To say that demand for housing has subsided is misleading and not only have transactions remained consistent throughout the start of the year, but buyer demand remains prevalent, albeit more selective than it may have been previously.

Where the property market is concerned, London has been the driving force behind the recovery of the financial crash and while the capital may have paused for breath at present, it still offers by far the best investment options when looking at the UK market and will continue to do so moving forward.

Founder and CEO of Springbok Properties, Shepherd Ncube, commented:  

“We’ve now seen three consecutive months of positive quarterly and annual price growth and these more long-term indicators of market health suggest momentum is again starting to build across the UK property sector.

While current market conditions may not be ideal they certainly could be worse and ten years on from the market lows of the financial crisis it's important to remember this. When considered in this context, Brexit and the resulting market uncertainty has been a mere blip during an otherwise impeccable recovery for the UK market.

As we enter the spring and summer selling seasons this momentum will continue to build and regardless of how and when we leave the EU, the market will remain robust and continue to thrive despite all that’s thrown at it.”

Source : Insight DIY Team and Halifax

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