UK house prices are still rising despite gloomy predictions – Halifax forecasts growth of up to 4% in 2019
The lender’s House Price Index for December showed that the market grew within the 0-3% that it forecast at the beginning of 2018. Prices also increased in December by 2.2%, after 1.2% in November, leaving the average UK home worth £229,729 at the end of 2018.
Russell Galley, managing director at Halifax, said: “A stronger monthly growth figure for December improved from a weaker November. Overall, house price growth in 2018 was very much within the range of 0-3% as we forecast at the start of the year.
“In 2019 we’re expecting continued stability in house prices with between 2% and 4% price inflation.
“This is slightly stronger than 2018, but still fairly subdued by modern comparison.
“However, this expectation will clearly be dependent on the Brexit outcome, with risks to both sides of our forecast. Of course, there are a number of other factors that will impact the market in 2019.”
Despite, record low mortgage interest rates, Galley pointed to the significant deposits required by lenders as a limiting factor in the number of potential purchasers. He said: “This year, mortgage payment affordability is more difficult to predict. There are competing pressures with signs of positive annual pay growth supporting affordability, but risks associated with the potential for higher interest rates are pulling in the other direction.
“On balance we do not see affordability pushing house price growth significantly in either direction.
“The shortage of homes for sale and continuing low levels of house-building both constrain the supply of houses, and in turn support high prices, which will continue to inhibit demand in 2019.”
UK house prices are still rising despite gloomy predictions – Halifax forecasts growth of up to 4% in 2019
Tags: Brexit, House Prices, Halifax, House Price Index, Price Growth, Property, Homes- December 2022
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