UK house prices still rising – for now

The latest Halifax House Price Index reveals that house prices across the UK rose by 2.8 per cent in the year to February 2020.

According to the latest Halifax data, the average price in the UK is currently £240,677.

On a monthly basis, house prices rose by 0.3 per cent, while in the latest quarter (December to February) house prices were 2.9 per cent higher than in the preceding three months (September to November.

“The UK housing market has remained steady heading into early spring, with house prices increasing by 0.3 per cent in February and up 2.8 per cent on the previous year,” said Russell Galley, Managing Director of the Halifax  “Much like we saw in January, the increases seen in February reflect the continued improvement of key market indicators. The sustained level of buyer and seller activity is strong compared to recent years, with positive employment conditions and a competitive mortgage market continuing to support demand.”

According to Bank of England figures, mortgage approvals have risen from December. The latest figures show that the number of mortgages approved to finance house purchases were 70,888 in January 2020 – a 4.4 per cent month-on-month rise, following a rise of 3 per cent in December. Year on year growth is 7.1 per cent.

However, Galley says that the current Coronavirus crisis could impact negatively on the UK housing market.

“Looking ahead, there are a number of risks, including the potential impact of coronavirus, which continue to exert pressure on the economy and we wait to see how these will affect housing market sentiment later in the year.”

Article published 9th March 2020