According to a report by the Halifax, annual house price growth has slowed to 1.8% with the average price of a house in the UK now at £224,353.
Russell Galley, Managing Director of Halifax bank said, “House prices continue to remain broadly flat, as they have since the end of last year. The annual rate of growth has slowed from 2.2% in January to 1.8% in February, the lowest rate of growth since March 2013.”
“The labour market continues to perform strongly with the number of people in employment rising by 88,000 in the three months to December. Notably, this is almost entirely accounted for by full-time jobs. The strength of the jobs market may finally be benefitting wage growth, with the annual growth rate accelerating from 2.3% in November to 2.8% in December. However, earnings are rising at a slower rate than consumer prices.”
Despite the November rise in the Bank of England Base Rate, mortgage rates continue to stay low by historical standards. While Halifax expects price growth to remain low, the low mortgage rate, combined with an ongoing shortage of properties for sale, should mean that prices remain stable over the coming months.