The latest data and analysis from Halifax has revealed that there has been a slight rise in annual house price growth since the end of 2019. According to this morning's figures, annual house price growth increased to 4.1% in January after gains of 1.8% and 1.2% seen in December and November respectively.
The lender revealed that during the latest quarter, house prices were 2.3% higher than in the preceding three months.
Russell Galley, managing director of Halifax, comments on this morning's figures: “A number of important market indicators continue to show signs of improvement. We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy. However, it’s too early to say if a corner has been turned. The recent positive figures may actually represent activity that would ordinarily have been expected to take place last year but was delayed by economic uncertainty. So while housing market activity has undoubtedly increased over recent months, the extent to which this persists will be driven by housing policy, the wider political environment and trends in the economy.
“Looking ahead, we still expect a moderate rate of house price growth over the course of the year. Demand is likely to continue to exceed the supply of properties for sale across the UK, with the subdued pace of new building also adding to upward price pressure. The environment for mortgage affordability should stay largely favourable. However, with the growth in rental costs accelerating, many first-time buyers will continue to face a significant challenge in raising necessary deposits.”
