Halifax has reported that house prices in the three months from August to October were 0.1% higher than in the preceding quarter.
The monthly change was 1.4%, making the average price of a home now £217,411.
Martin Ellis, Halifax housing economist, said: “House prices in the three months to October were largely unchanged compared with the previous quarter. The annual rate of growth continued on its recent downward trend, easing to 5.2%.
“Activity levels, like house price growth, have softened compared with a year ago. Home sales, however, appear to have stabilised in recent months following the distortions earlier in the year due to the changes to stamp duty in April.
“Annual house price growth has nearly halved from a peak of 10.0% in March this year, but remains robust at 5.2%. This expected slowdown appears to have been largely due to mounting affordability pressures, which have increasingly constrained housing demand. Whilst house price growth may ease further in the coming months, very low mortgage rates and a shortage of properties available for sale should help support price levels.”
Mark Posniak, managing director of Octopus Property, added: “Like the Nationwide last week, the Halifax shows a declining annual rate of house price growth but a market that is proving more resilient than many expected.
“In a politically and economically uncertain time, both at home and overseas, the resilience of the UK property market will certainly be tested. Demand may well be down amid such uncertainty, but as the latest mortgage approvals statistics reveal, it’s by no means out.
“The monthly rise should be taken with a pinch of salt. The quarterly flatness is a much better reflection of where the market is at. The low cost of borrowing, weak supply levels and a robust jobs market are preventing prices from falling more sharply.
“Confidence is likely to play an increasingly prominent role in the short to medium-term. As inflation rises, people will feel less well off and will become more cautious, and this could result in subdued transaction levels.
“Brexit-related uncertainty remains the key narrative for the UK housing market at present, and last week’s high court ruling on Article 50 could see that uncertainty prolonged for longer than anticipated.”
