House prices in the UK registered 2.2 per cent increase month-on-month in December 2018, according to the latest Halifax House Price Index.
The average price of a UK home is now an estimated £229,729, registering an annual change of 1.3 per cent. The house price growth continued to remain in the positive territory towards the end of 2018, belying predictions of massive falls. Stakeholders of the UK property market expect house price growth to remain in the positive territory this year.
In 2019, Halifax is expecting continued stability in house prices with between 2 per cent and 4 per cent price inflation, which is a welcome relief for investors. This is slightly stronger than 2018, but still fairly subdued by modern comparison. “However, this expectation will clearly be dependent on the Brexit outcome, with risks to both sides of our forecast,” Halifax said.
There are a number of other factors that will impact the UK property market in 2019. Brexit deal is crucial for the residential property market to see growth. The shortage of homes for sale and continuing low levels of housebuilding both constrain the supply of houses in the UK and in turn support high prices, which will continue to inhibit demand in 2019.
House prices in the three months to December 2018 were 1.3% higher than in the same three months a year earlier, says Halifax