January 2020 House Price Index published by Halifax

The January 2020 House Price Index published by Halifax shows house prices rose over the month and over the three months.

Headlines:

• House prices in January were 4.1% higher than in the same month a year earlier
• On a monthly basis, house prices rose by 0.4%
• In the latest quarter (November to January) house prices were 2.3% higher than in the preceding three months (August to October)

Russell Galley, Managing Director, Halifax, said:

“House prices kicked off the year with a modest monthly increase, rising by 0.4% in January following the stronger gains of 1.8% and 1.2% seen in December and November respectively. As a result, annual growth remained relatively stable at 4.1%, up just a fraction from the end of 2019.

“A number of important market indicators continue to show signs of improvement. We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy. However, it’s too early to say if a corner has been turned. The recent positive figures may actually represent activity that would ordinarily have been expected to take place last year but was delayed by economic uncertainty. So while housing market activity has undoubtedly increased over recent months, the extent to which this persists will be driven by housing policy, the wider political environment and trends in the economy.

“Looking ahead, we still expect a moderate rate of house price growth over the course of the year. Demand is likely to continue to exceed the supply of properties for sale across the UK, with the subdued pace of new building also adding to upwards price pressure. The environment for mortgage affordability should stay largely favourable. However, with the growth in rental costs accelerating, many first-time buyers will continue to face a significant challenge in raising necessary deposits.”

Kindly shared by Halifax