Halifax: house price rises coming to an end

Mortgages and Home

Updated on 08 October 2014 | 0 Comments

Halifax suggests house prices are set to stabilise after rising sharply over the past year.

House price growth will stabilise for the rest of the year and into early next year, according to Halifax.

The lender's latest house price index revealed house prices rose 0.6% between August and September, with the average house now costing £187,188. Annual house price growth now stands at 9.6% to the end of September, falling slightly from a peak of 10.2% in July.  

This contradicts Nationwide’s latest survey which said that prices fell by 0.2% between August and September.

Halifax said that this slowdown in house price growth was likely as "supply and demand become increasingly better balanced".

Slowing down

The housing market has slowed down over the summer months, according to lenders. There are a number of different factors behind this, such as the Mortgage Market Review which came into force in April and introduced stricter lending critera, as well as borrower concerns about the likelihood of a rise in interest rates.

As a result, according to the latest survey by the Bank of England, lenders reported that credit lending had fallen to levels not seen since the end of 2008. However, lending is expected to bounce back as banks get used to the new regulations and strive to win back market share.

Compare mortgages with lovemoney.com

More on house prices:

House prices will fall next year

Average price of flat jumps £50,000 in 10 years

UK house prices at a record high

Comments

Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.