Average house prices remained stable in June in the UK, registering an annual +5.7 per cent change, according to the latest Halifax House Price Index.
The quarterly increase in the house price was 2.4 per cent with the average price of home estimated at £237,100. “June’s annual change figure of 5.7% comes against the backdrop of a particularly low growth rate in the corresponding period in 2018, which has had an impact on year-on-year comparisons,” Halifax report said.
The house prices experienced a rise while mortgage approvals remained steady in the last three months. Bank of England industry-wide figures shows that the number of mortgages approved to finance house purchases – a leading indicator of completed house sales – are around 65,000 in April and May.
The UK Residential Market Survey by Royal Institution of Chartered Surveyors saw a slightly more stable picture coming through during May. The sales to stock ratio increased slightly to 31.5 per cent. Data from HMRC showed 89,810 home sales in May, indicating a stable market.
Though the delay in Brexit deal with the European Union has impacted the residential property market, transactions have remained stable. This indicates the faith shown by house-buyers and property investors in the UK real estate market.
Forecasts by various research agencies expect the property market to bounce back in the next two years.
The Halifax House Price Index is the UK's longest running monthly house price series with data covering the whole country going back to January 1983.