The Brief
- Annual house price growth stands at 2.6%.
- Figures have remained steady each month since November last year.
- It would appear consumer confidence in the UK housing market remains robust.
We spoke to our industry expert and leading authority on Financial Services, Nigel Glossop, Managing Director of Alexander James Mortgage Services. Here’s what he had to say about the numbers for house price growth found in the Halifax House Price Index.
“Reviewing the data from Halifax on Friday morning, there are very few shocks and surprises; annual house price growth stands at 2.6%, which is still very much in line with industry forecasts for 2017”
Nigel further qualified this statement by bringing our attention to the impact of the General Election earlier this year.
“bearing in mind we didn’t know there was going to be an Election this year when those predictions were first cast – together with a slight uptick in house price growth on the same period last year.”
House price growth correlating with forecasts was not the only positive indicator that Nigel identified. Mortgage approvals have also gone up for home purchases.
“What’s also positive news is that mortgage approvals for home purchases increased slightly (0.2%) between April and May, and overall figures have remained steady each month since November last year”
We asked Nigel what he thought the significance of mortgage renewals remaining steady might be.
“This would potentially suggest that the market has found a new level and could remain steady over the coming months, due to the ongoing market fundamentals of paucity of stock versus resilient buyer demand in most parts of the country, and increasing competitive deals being released by mortgage lenders.”
So, the signs of buyer demand remaining strong, particularly when combined with the scarcity in stock and increase in competition, means there’s good potential for the market remaining steady. Naturally, we had to ask Nigel: what could this mean for the UK housing market?
“All these factors would underscore the fact that it would appear consumer confidence in the UK housing market remains robust, resulting in the likelihood of the market continuing its current momentum for the foreseeable future”
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