House Price Growth Slowing as Holiday Season Approaches
House prices in the UK housing market have been on hold for the last few months and some housing experts even call them stagnant. Many reasons are being pointed to as this has created significant concern over time. Uncertainty within the market due to Brexit concerns, lower demand overall as the selling season has ended and many are looking to the holiday season, and challenges with wage growth have all been the focus of lower prices. A major point of concern as the year comes to a close is the possibility that house prices will drop even further with a No-Deal Brexit.
Halifax figures recently outlined the current state of house prices in the UK housing market. For the year, house prices had only increased 1.5% through October. This is well off the original forecast for the year which was growth of 2-3%. House price growth is a major fundamental when it comes to the health of the market, so this is quite alarming for many planning to make a move of any kind this year.
A well-known economist, Alan Archer, recently commented on the data to surface regarding house prices, saying: “I expect house prices to fall modestly without a Brexit deal.”
“A negotiated deal however could result is house prices rising 2%,” he added.
Although turbulent times have dominated the market this year, the Halifax still expects house prices to grow by 3% in the coming months. They noted the supply of homes for sale is still limited and as a result is hampering overall growth of prices.