UK house prices rise for first time in eight months - Halifax
Reuters
Published Jan 05, 2024 07:11
Updated Jan 05, 2024 08:10
LONDON (Reuters) -British house prices rose in annual terms in December for the first time in eight months, data from mortgage lender Halifax showed on Friday, adding to signs of a stabilisation in the property market after a hit from higher borrowing costs.
House prices were 1.7% higher than in December 2022 - when the market was hammered by the "mini-budget" crisis of former Prime Minister Liz Truss.
In monthly terms, prices rose by 1.1% from November, Halifax said.
Britain's housing market boomed during the COVID-19 pandemic before demand fell as the Bank of England pushed up interest rates to counter a surge in inflation across the economy.
However, a fall in mortgage rates in recent weeks has prompted some buyers to return to the market.
BoE data published on Thursday showed lenders approved the most mortgages in November since June.
Kim Kinnaird, director at Halifax Mortgages, said December's price rise was probably driven mostly by a lack of properties on for sale but the fall in mortgage rates raised the possibility of increased confidence among buyers in early 2024.
"Our latest forecast suggests house prices could fall between -2% and -4% during the coming year, although, as with recent years, forecast uncertainty remains high given the current economic climate," Kinnaird said.
Imogen Pattison, an economist with Capital Economics, said the full-year increase in prices was helped by a 1.4% monthly fall in December 2022, shortly after the mini-budget crisis hit bond markets and market interest rates soared.
However, the recent fall in mortgage rates meant Capital now expected British house prices to rise by an annual 3% in the fourth quarter of 2024, compared with a previous forecast of a 1.5% fall, Pattison said.
Last week, rival mortgage lender Nationwide - which uses a different methodology to Halifax - said its data showed a fall of 1.8% in house prices in the 12 months to December, the biggest drop over the course of a year since 2008.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.