Good news for first-time buyers as house prices drop by 1.4% in November 2018
Not so good news for homeowners…..
Britain’s biggest mortgage lender, Halifax, have released data (November 2018) that suggests that UK house prices are rising at their slowest rate in six years.
The average house price in the UK now stands at £224,578, just a 0.3% increase on November 2017, with prices falling by 1.4 per cent on the previous month.
Russell Galley, Halifax managing director stated: ‘High employment, wage growth and historically low mortgage rates continue to make home ownership more affordable for many, though the need to raise a significant deposit still acts as something of a restraint on the market,’ he added
‘This is largely offset by relatively limited supply of new and existing properties for sale, which continues to sustain house prices nationally,’ While there may be a seasonable aspect to the slowdown, the market is likely to be erratic moving into 2019 as uncertainty over a Brexit deal remains. While this is good news for first-time buyers, Halifax says raising a ‘significant deposit still acts as something of a restraint on the market’.
The data from the Halifax also shows that on a quarterly basis house prices fell by 1.1%. As for 2019 predictions, there seems to be a united belief that the market will continue to be subdued until the economic and political situation changes. The longer these factors linger, the more painful the road ahead may look. However, there is room for optimism, especially for new homes buyers, as house price come down in some areas, property becomes more affordable which consequently could boost the economy by increasing spending power and buying capacity.