The latest data from Halifax on house prices shows growth slowing to levels last seen in the immediate and chaotic aftermath of June’s snap General Election.
The release suggests the stamp duty exemption for first time buyers, announced in the November 2017 Budget, has not had an early impact on the market.
DECEMBER DECLINES
In December prices fell by 0.6%, the first decline since June 2017. Prices for the year as a whole were up 2.4%. The managing director of Garrington Property Finders, Jonathan Hopper, says 2018 is not 2008 despite ‘an uncomfortable similarity’ in the ratio of average property prices to average salaries.
‘As long as there are no unforeseen shocks - such as a change of government or the collapse of Brexit negotiations - we expect gradual progress to continue,’ he adds.
LACK OF SUPPLY PROVIDING PROP
Chief executive of property lender Octane Capital Jonathan Samuels says: ‘Prices would perhaps have fallen further were it not for the sheer lack of supply.
‘It's the lack of supply rather than the strength of demand that is keeping annual price growth in the black.’
He also notes the low single-digit growth expected for 2018 is positive as it may help address an affordability crisis.
This tallies with comments from the chief executive of Telford Homes (TEF:AIM) Jon Di-Stefano to Shares late last year that steady increases rather than surging prices are better for business.
