Halifax recently released their House Price Index.
- Prices in the three months to February were 9.7% higher than in the same three months a year earlier
- House prices in the latest three months (December-February) were 3.0% higher than in the preceding three months
Commenting, Martin Ellis, Halifax housing economist, said:
“House prices in the three months to February were 3.0% higher than in the previous three months whilst the annual rate remained unchanged at 9.7%. “Prices continue to rise at a robust pace driven by a significant imbalance between supply and demand. Whilst this position is likely to continue over the coming months, there are some tentative signs that the supply situation may be beginning to improve.
Instructions for secondhand properties coming up for sale have increased in the past two months and the level of housebuilding increased significantly in 2015. Further ahead, increasing affordability issues, as house price increases continue to exceed wage growth, are likely to curb housing demand and cause price growth to ease.”
- House prices decreased by 1.4% between January and February. This offset much of January’s 1.7% rise. Monthly house price changes can be volatile. The quarter on quarter change is a more reliable indicator of the underlying trend.
- Increase in areas where homes have risen more in value than owner’s total earnings. The increase in average house prices has exceeded total average employee’s net earnings in more than a quarter of local authority districts across the UK – 108 out of 380 (28%) – over the past two years, according to recent Halifax research.
- Home sales remain on an upward trend. UK home sales in the three months to January were 1.5% higher than in the previous three months and 9.3% higher than in the same period a year earlier. (Source: HMRC, seasonally-adjusted figures)
- Mortgage approvals higher. The volume of mortgage approvals for house purchases – a leading indicator of completed house sales – increased by 5% between December and January. Approvals, at 74,600, were the highest since January 2014. (Source: Bank of England, seasonally-adjusted figures)
- Supply remains very low but signs of slight improvement. New instructions by home sellers increased in January for the second consecutive month. This contributed to the first rise in the stock of secondhand properties for sale for ten months. (Source: Royal Institution of Chartered Surveyors’ (RICS) monthly report)
- Number of new homes built increases. Private sector housebuilding completions in England increased by 7% between Quarter 3 and Quarter 4 2015. Overall, private sector completions in 2015 were 20% higher than in 2014; totalling the highest annual total since 2008. (Source: DCLG)