The first Halifax House Price Index of 2017 has been released, and as our Head of Lending explains in his comment below, the year appears to have ended on a positive note with house prices on the up.
Nigel Glossop, Managing Director for Alexander James Mortgage Services comments:
“The data released from the Halifax indicates that the property market in the UK ended 2016 in resilient shape, with house prices increasing 1.7% month on month, 6.5% year on year and also a quarterly rise of 2.5%.
“Underlying trends that were prevalent throughout last year are likely to have been contributing factors, notably record low interest rates, and these aspects look set to continue as we move into the new year. If this is the case, as the Halifax report suggests, the market could remain steady although growth could possibly plateau, with transaction and lending levels potentially remaining static.
“The report also highlights that mortgage approvals for house purchases increased in November, suggesting a ‘down the line’ uptake of activity that we may well see reflected in January and February’s figures, once released. This certainly indicates that, despite the current uncertain outlook for the UK economy, consumers still feel confident enough to consider moving and putting their hard-earned cash into bricks and mortar. This demand, alongside the other contributing factors, could well underpin market forecasts, such as those expressed by the Halifax, of between a 1% and 4% increase in property prices overall for 2017, suggesting that the market remains consistent and positive as we head into 2017.”
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Correct at time of publication. The views and opinions expressed herein are those of the individual contributor and do not necessarily reflect those of the Chancellors Group of Estate Agents Ltd or its subsidiaries. References to legislation, best practice and other matters with legal implications such as fees, rules and processes are included for information and editorial purposes only and are not authoritative, nor should they be interpreted as advice. When in doubt you should only take advice from an industry professional or solicitor where appropriate. E&OE.