It reports that house prices in the three months to July 2016 were 1.6% higher than in the three months to April 2016, with the average house price sitting at £214,678. Prices in the three months to July were 8.4% higher than in the same three months of 2015.
House prices declined by 1.0% between June and July, however, this largely offset the 1.2% increase in June. Month-on-month changes can be erratic and monthly falls often occur within an upward trend.
Brian Murphy, Head of Lending for Mortgage Advice Bureau comments:
“The data released by the Halifax this morning would appear to be reassuring and consistent with ongoing consumer demand for property. July is historically a quiet month for residential transactions as we move into the holiday season, however in July 2015 we saw an unusually busy month due to pent up market demand as a result of the General Election. Therefore comparing the year on year figures, and reading the 8.4% annual increase in context, this actually shows that the market would appear to be in positive shape, despite the recent political and economic landscape shifts.
Typically prices cool slightly in the summer months as vendors take a more pragmatic view in order to sell, so this trend is in line with previous years, although the ongoing lack of balance in terms of stock and supply will most probably continue to underpin values around most of the UK. But with the distinct possibility that some lenders will soon release even more competitively priced products in the wake of the decision to cut interest rates yesterday, it’s quite possible that buyers who had been ‘holding off to see what happens’ may now feel more confident that they are able to get a good deal, both in terms of borrowing and their purchase price.”