U.K House-Price Growth Set to Slow in Coming Year, Halifax SaysFergal O’Brien
U.K. house-price growth has peaked and will probably ease this year and next as demand wanes, according to Halifax.
Values increased 0.6 percent in September from the previous month, taking the average to 187,188 pounds ($300,774), the mortgage unit of Lloyds Banking Group Plc said in a statement today. The three-month rate slowed to 2.7 percent, the least since June.
The housing market has lost some momentum in recent months after the Bank of England put new curbs on mortgage lending and a surge in prices stretched affordability. The central bank said yesterday that a measure of mortgage availability dropped to the lowest level since 2008 and the Centre for Economics and Business Research has forecast that London house prices will fall next year for the first time since 2009.
Weak wage growth and the possibility of an interest-rate increase “appear to have tempered housing demand,” said Martin Ellis, a housing economist at Halifax. “A moderation in growth looks likely during the remainder of 2014 and into next year as supply and demand become increasingly better balanced.”
From a year earlier, prices grew 9.5 percent. On a quarterly basis, they increased 9.6 percent in the three months through September, compared with 9.7 percent in the quarter to August. The growth rate of about 10 percent, seen earlier this year, probably marked the peak, Ellis said.