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House price growth continues to reflect “economic uncertainty”

Written by Kate Boguslawska | 04/12/19 08:00

UK house prices rose 0.9 per cent across the country in October 2019 compared to the same month in 2018, a major new report has revealed.

The finding forms part of the Halifax House Price Index, which provides a monthly perspective on the state of the property market.

According to the report, house prices were 0.2 per cent higher in the latest quarter (August to October) compared to the previous three months (May to July).

However, on a monthly rolling basis, house prices fell 0.1 per cent.

The figures mean that the average residential property value in the UK now stands at £232,249.

Commenting on the figures, Russell Galley, Managing Director at Halifax, said average house prices have continued to grow at a modest pace, reflecting “underlying factors in consumer habits and global economic uncertainty”.

“Average house prices continued to slow in October, with a modest rise of 0.9% over the past year. While this is the lowest growth seen in 2019, it again extends the largely flat trend which has taken hold over recent months”, he said.

“A number of underlying factors such as mortgage affordability and wage growth continue to support prices, however, there is evidence of consumers erring on the side of caution.

“We remain unchanged from our view that activity levels and price growth will remain subdued while the UK navigates political and economic uncertainty.”

Despite the caution, the market itself remains active. Official HM Revenue & Customs (HMRC) figures show that home sales are at their highest level since August 2017. In total, 101,740 homes were sold in September – a five per cent increase compared to the month previous.

Click here to access the Halifax House Price Index report.

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