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London - The pace of UK annual house price growth slowed in February, adding weight to predictions of waning momentum in 2017, according to Halifax.
In the three months to February, prices rose an annual 5.1% compared with a 5.7% pace in January. That’s almost half the 10% peak seen in March. Values rose 0.1% from a month earlier.
Halifax expects price growth to slow to between 1% and 4% by the end of the year as the economy loses steam. The average British house price last month was £219 949 and supply remains very low with average stock levels on estate agents’ books close to the least on record, according to the report.
“A sustained period of house-price growth in excess of pay rises has made it increasingly difficult for many to purchase a home,” Martin Ellis, an economist at Halifax, said in a statement with the report.
“This development, together with signs of reduced momentum in the jobs market and squeezed consumer spending power, is expected to curb house price growth during 2017.”
Even so, bond affordability has improved. Typical payments for new borrowers ended last year at 30% of earnings, compared with the peak of 48% in 2007, the Halifax said.
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