07 February 2024
If you are covering the Halifax house price index, please see the following comment from Karen Noye, mortgage expert at Quilter:
“This morning’s Halifax house price index suggests the housing market remains on the road to recovery, with prices climbing 1.3% in January and 2.5% year on year, the fourth consecutive monthly rise and the highest annual growth rate since January 2023.
“This increase in house prices is a positive sign that the housing market is getting back on its feet, and it seems that the reduction in mortgage rates driven by a combination of competition between lenders and the pricing in of future Bank of England rate cuts lured in more buyers in the new year, feeding into the cautiously optimistic outlook for the housing market this year.
“The Bank of England held interest rates once more at its latest MPC meeting, and it is unlikely to lower them for some time yet unless inflation starts to drop more rapidly. Though we are starting to see a gradual increase in confidence and buyers making a tentative return to the market, there are likely many more prospective buyers still stuck in ‘wait and see’ mode who are holding out in the hopes of securing cheaper deals once the Bank switches stance. Once the BoE does begin making rate cuts, we will likely see house prices buoyed further as there remains a serious lack of supply.
“For those who are looking to purchase a property this year, seeking professional mortgage advice will ensure you make the best possible decisions for your circumstances during what remains a relatively unpredictable time."
