Brian Murphy, Head of Lending for Mortgage Advice Bureau comments:
“The report released by the Halifax this morning, suggests that annual house price growth, price still in positive territory has dropped back slightly compared to last month. In October, we saw annual house price growth at 4.5%, however in November; the Halifax data suggests that annual growth is now at 3.9%, with house prices increasing 0.5% on last month.
The story of 2017 has been a lack of available properties for sale in many areas, which has created upwards pressure on prices. Of course, this is a double-edged sword; great news for the homeowner who is sat on an appreciating asset, but very difficult for those who want to get on or move up the property ladder, particularly given that wage growth hasn’t kept in line with property values. We’ve already seen that prices and activity in areas such as London and the South East have cooled in the last few months, which hopefully will assist those who wish to purchase around the capital. However, where property affordability and perhaps a better lifestyle conjuncts with improved transport links, such as the West Midlands and East of England, and buyers can get more for their money yet still reasonably commute into the City, we’re seeing a pattern of these areas experiencing a ‘mini-boom’, a picture which is quite likely to continue for some time to come. The fact that pricing has cooled slightly in the last month is more likely a result of the ‘seasonal slowdown’ as we approach the Christmas holidays, but the interest rate rise - albeit only 25 basis points - at the beginning of November may have caused some buyers to pause for thought, particularly given that another rise has been signposted for 2018.
As the Halifax report this morning indicates that the average home price of £226,821 now falls squarely within the Stamp Duty exception range for First Time Buyers, hopefully the recent move by the Chancellor will translate into real savings for those getting onto the ladder.”
You can read the full report here.
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