Halifax – The July 2019 House Price Index published

The Halifax July 2019 House Price Index, published 7th August 2019, shows that the average house price dipped again in July.

• On a monthly basis, house prices fell by 0.2%
• In the latest quarter (May to July) house prices were 0.4% higher than in the preceding three months (February to April)
• House prices in the three months to July were 4.1% higher than in the same three months a year earlier

July’s annual change figure of 4.1% comes against the backdrop of relatively low growth in the corresponding period in 2018, which has had an impact on year-on-year comparisons.

Russell Galley, Managing Director, Halifax, said:

“The average UK house price fell slightly for a second month, as the market continues to tread water with marginal increases or decreases in each monthly period. That said, it’s worth remembering that while economic uncertainty continues to weigh on the market, the overall trend actually remains one of comparative stability, with average prices down by less than £600 over the last three months.

“We have seen a reported drop off in the number of properties sold during the early months of summer, which may lead some to speculate a downturn is on the horizon. However, new buyer enquiries are up, and favourable mortgage affordability – driven by low interest rates and strong wage growth – should continue to underpin prices for the time being.

“In the longer-term, we believe there is unlikely to be a step change in market activity until buyers and sellers see some form of resolution to the current economic uncertainty.”

Key facts Housing activity

• HMRC Monthly data shows UK home sales reducing. June saw 84,490 home sales. Year-on-year, UK seasonally adjusted residential transactions in June 2019 were approximately 16.5% lower than June 2018 (25.1% lower on a non-seasonally adjusted basis). (Source: HMRC, seasonally-adjusted figures)
• Mortgage approvals remain steady at just slightly above the 12 month average. Bank of England industry-wide figures show that the number of mortgages approved to finance house purchases – a leading indicator of completed house sales – have risen by 793 from May to 66,440 in June. (Source: Bank of England, seasonally-adjusted figures)
• The latest set of results (June 2019) for the RICS Residential Market Survey are consistent with the current trend of stability. The sales to stock ratio decreased slightly to 30.9%. Agreed sales rose to a positive figure for the first time in eleven months. (Source: Royal Institution of Chartered Surveyors’ (RICS) monthly report)

Kindly shared by Halifax