Signs that the UK’s housing market is continuing its slow down have been highlighted by one index that reveals that price growth has hit a five-year low.
The news from mortgage lender Halifax reveals that house prices in the UK in the three months to October have risen at the weakest annual rate for more than five years with price rises falling to 1.5% from the 2.5% recorded in the three months to September.
That’s the lowest price increase since March 2013, though it’s slightly lower than many lenders have been predicting.
Halifax says that it expects house prices to rise for the rest of this year.
A spokesman said: “House prices will be supported by the supply of existing and new homes becoming available for sale remaining low.”
Housing Market In The UK Has Been On A Slowdown Since 2016
The housing market in the UK has been on a slowdown since early 2016, particularly in the south-east and London.
Homes worth more than £1 million in the capital have seen the biggest drop in price due to falling foreign investor interest since the Brexit referendum.
Across the UK, house prices have risen by 0.7% in October, following a 1.3% fall in September, the index from Halifax reveals.
Brexit Worries Stifling House Price Growth
The news from Halifax underlines data published by rival lender Nationwide last week which also highlighted that house prices have now reached a five-year low.
According to the lender, house prices grew by 1.6% in October, which is down from September’s figure of 2%.
Before the Brexit vote in June 2016, the Nationwide index highlighted that house prices were growing by 5% year.
The chief economist at Nationwide, Robert Gardner, said: “The uncertain economic outlook and squeeze on household budgets has dampened demand though borrowing costs are low by historic standards and employment is at a 40 year low.
“We are expecting house prices to increase by around 1% over 2018.”
North-South Divide Still Strong
The figures from Nationwide and Halifax are also reflected in data published by the Office for National Statistics recently which showed that in the year to August, house prices slowed down to a five-year low of 3.2%.
In addition, figures from the estate agents Savills highlight that the current divide in house prices between the north and south of England will begin to narrow over the next five years.
The firm says that property prices in the North of England could rise by a fifth.
Savills says that house prices across the UK will rise in line with average incomes, with prices rising by 21.6% in the north-west of England and in London by just 4.5%.