Halifax claim that UK house price growth is slowing down

Halifax claim that UK house price growth is slowing down

According to the country’s largest lender, the Halifax, the growth in relation to UK house prices is continuing to slow down.

Halifax said that on average,e prices have risen by 3.9% in the year to the end of November, which is 4.5% down from October’s figures.

In addition, Halifax have also warned that the growth is likely to ease further in the longer term, with wages failing to keep pace with inflation across the UK.

However, the figures have caused some debate, with certain commentators claiming that the Halifax stats were out of kilter with a host of other indicators, which are suggesting that price rises are actually rather modest.

Recently, Halifax’s rivals Nationwide claimed that prices have risen by 2.5% over the past year, which is actually lower than the rate of general inflation.

The Consumer Prices Index (CPI) did claim however, that the cost of living has risen by 3% in the year to October.

Halifax believe that the average flat or house in the UK is selling for £226, 821.

Speaking about the figures, Russell Galley – the managing director of the Halifax Community bank – claimed that the imbalance is rather worrying, however he also believes that house price growth is very likely to slow down in the long term.

“The imbalance between supply and demand continues to support house prices, which doesn’t look like changing in the near future,” Galley said.

“Further ahead, increasing affordability issues, as price increases continue to outstrip wage growth, are likely to curb housing demand and cause price growth to ease.”

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