7 May 2024
If you are covering the latest Halifax house price index, please see the following comment from Karen Noye, mortgage expert at Quilter:
“The slowdown in the housing market continues to have an impact on house prices, though this morning’s house price index from Halifax paints a marginally more positive picture than Nationwide’s equivalent. Halifax reported that house prices grew 0.1% in April following a 0.9% fall in March, while on an annual basis, prices grew by 1.1%.
“The differing views reported in the various house price indices show just how unpredictable the property market remains. Though Halifax reports an increase, the growth in house prices is hardly anything to write home about given we would typically expect sales to gain momentum in the spring, and for house prices to rise as a result. However, so far this year that has not been the case as monthly property transactions have been remarkably subdued.
“What’s more, mortgage rates have been gradually increasing, so we can expect transactions to remain dampened for some time yet. When combined with the ongoing cost of living pressures, many prospective buyers will struggle when it comes to affordability, particularly those first-time buyers who will also have found it much harder to save enough for a deposit.
“All eyes will be on the Bank of England as it gears up to announce its latest monetary policy decision later this week. Though it is not expected to declare a shift in stance until later in the year, things are beginning to look a little more positive and we could see a turning point for the property market as we approach the summer months. An interest rate cut would present a more favourable borrowing market and would likely help reignite demand given many people are holding off in hopes of lower rates and reduced affordability pressures.”
