U.K. House-Price Growth Slows as Halifax Sees Moderation in 2015

U.K. house prices recorded their weakest quarterly growth in two years at the end of 2014 and the market will continue to cool this year, according to Halifax.

House prices rose 0.3 percent in the three months through December, the mortgage lender said in a statement today. On a more volatile monthly measure, values jumped 0.9 percent.

“We expect a further moderation in house-price growth over the coming year,” said Martin Ellis, housing economist at Halifax. While he sees a “deterioration in housing affordability,” a stronger economy and rising wages should support the market.

House prices rose about 8 percent last year, and Halifax forecasts they will increase between 3 percent and 5 percent in 2015. The Bank of England said on Tuesday that mortgage demand fell “significantly” in the fourth quarter, reaching its lowest level in more than six years.

The Halifax report is the latest to show that Britain’s housing market has lost some momentum. Nationwide Building Society said last week that annual house-price growth had weakened to a 13-month low.