Halifax reports house prices dip in September, up 8.6% on quarter

Although house indices might differ when it comes to specific growth rates, economists agree across the market that house prices are expected to continue to surge, with the consensus being a 5% rise in 2016.

At the same time, prices climbed 8.6% from the past year, but slower than the 9% growth posted in three months to August.

In a city, where living below the staircases, with space of just a man to lie down costs £ 500 per month, a marginal house prices there should be welcomed broadly rather than seeing it as signs of slowdown.

Price rises are still high, considering wage growth, which has just started picking up rising at 3%.

“The national increase in flat prices has been led by London where flats account for roughly one in two property sales; substantially higher than for the country as a whole”, said Martin Ellis, Halifax’s chief economist.

That’s a huge fall from the 2.7 per cent rise between July and August. According to the housing society, house prices grew 3.8% on-month in September, the fastest pace in four months.

The Halifax survey contrasted with another measure of British house prices, compiled by rival mortgage lender Nationwide, which found prices rose more quickly in September than in August. That means that the average property price is now £202,859.

‘Increasing demand is combining with very low supply to drive robust underlying house price growth.

‘However, the risk remains that construction activity will lag behind strengthening demand, putting upward pressure on house prices and eventually reducing affordability’.

But, the volume of mortgage approvals increased for the third consecutive month in August to the highest level since January 2014, the findings reveal.