The Halifax has reported that house prices slowed in January 2017, compared to December 2016. The average house is now worth £220,260 which shows a rise of 5.7% for the last 12 months, down from the previous figure reported at 6.5%.
The Nationwide has also reported a slowing of growth, though that is not necessarily a surprise, Christmas does tend to impact on prices as would be buyers have their focus elsewhere.
The Halifax’s housing economist said: “Weaker economic growth and increasing pressure on spending power, along with affordability constraints, are expected to dampen housing demand, resulting in some downward pressure on annual house price growth during the year.”
Time will tell what happens with prices over the coming year. Brexit will continue to loom large, with the potential effects on the economy. One of, if not the main issue, remains – supply is hopelessly outstripped by demand.
An experiment is taking place in Tower Hamlets which links the cost of a block of apartments to the increase in wages. This is being touted as a potential way to keep prices low for generations to come.
Whatever the result of that experiment, today saw the government publish a white paper outlining a plan to get more houses built, including giving councils more powers to push developers to build once they have planning.
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