House price news: Values fall for first time since 2012

Values dropped by 0.2 per cent in the three months to April 2017, marking a decline not seen since November 2012, as measured by Halifax.

The average home in Britain nows costs £219,649, with prices falling 0.1 per cent on a monthly basis.

Annual growth remains at 3.8 per cent.

After years of home values rising faster than wages, buyers are now finding their affordability has hit a ceiling.

Consumers are also now feeling the hit of higher inflation, which has led to values stagnating in recent months, said experts.

However, prices are set to be held up by record low stock and ultra low mortgage rates.

Lenders have recently slashed home loan rates lower to attract new customers.

Martin Ellis, Halifax housing economist, said “Housing demand appears to have been curbed in recent months due to a deterioration in housing affordability driven by the sustained period of rapid house price growth during 2014-16.

“Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may also be constraining the demand for homes.

“A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale, should nonetheless help continue to underpin house prices over the coming months.”

Daily Express :: Personal Finance Feed


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