UK
Ireland
Scotland
London
Construction News
07/06/2023
Halifax Reports House Price Fall
Mortgage lender Halifax has estimated average house prices have gone down 1% in the past year.
The change represents the first annual decrease since 2012, a period of 11 years. The average house price is now £283,532 according to the lender.
The change in house prices follows repeated rises in the interest rates set by the Bank of England. Future rises in interest rates could be on the horizon as a method of controlling inflation.
Commenting on the latest statistics, Kim Kinnaird, Director, Halifax Mortgages, said: "House prices were largely unchanged in May, edging down very slightly (-£130) compared to April, with the average UK property now costing £286,532. More notably the annual rate of growth fell to -1.0%, marking the first time since 2012 that house prices have fallen year-on-year. Given the effectively flat month, the annual decline largely reflects a comparison with strong house prices this time last year, as the market continued to be buoyant heading into the summer.
"Property prices have now fallen by about £3,000 over the last 12 months and are down around £7,500 from the peak in August. But prices are still £5,000 up since the end of last year, and £25,000 above the level of two years ago.
"As expected the brief upturn we saw in the housing market in the first quarter of this year has faded, with the impact of higher interest rates gradually feeding through to household budgets, and in particular those with fixed rate mortgage deals coming to an end.
"With consumer price inflation remaining stubbornly high, markets are pricing in several more rate rises that would take Base Rate above 5% for the first time since the start of 2008. Those expectations have led fixed mortgage rates to start rising again across the market.
"This will inevitably impact confidence in the housing market as both buyers and sellers adjust their expectations, and latest industry figures for both mortgage approvals and completed transactions show demand is cooling. Therefore further downward pressure on house prices is still expected.
"One continued source of support to house prices is the labour market. While unemployment has recently ticked up from very low levels, brisk wage growth would over time help to improve housing affordability, if sustained."
The change represents the first annual decrease since 2012, a period of 11 years. The average house price is now £283,532 according to the lender.
The change in house prices follows repeated rises in the interest rates set by the Bank of England. Future rises in interest rates could be on the horizon as a method of controlling inflation.
Commenting on the latest statistics, Kim Kinnaird, Director, Halifax Mortgages, said: "House prices were largely unchanged in May, edging down very slightly (-£130) compared to April, with the average UK property now costing £286,532. More notably the annual rate of growth fell to -1.0%, marking the first time since 2012 that house prices have fallen year-on-year. Given the effectively flat month, the annual decline largely reflects a comparison with strong house prices this time last year, as the market continued to be buoyant heading into the summer.
-- Advertisement --
"Property prices have now fallen by about £3,000 over the last 12 months and are down around £7,500 from the peak in August. But prices are still £5,000 up since the end of last year, and £25,000 above the level of two years ago.
"As expected the brief upturn we saw in the housing market in the first quarter of this year has faded, with the impact of higher interest rates gradually feeding through to household budgets, and in particular those with fixed rate mortgage deals coming to an end.
"With consumer price inflation remaining stubbornly high, markets are pricing in several more rate rises that would take Base Rate above 5% for the first time since the start of 2008. Those expectations have led fixed mortgage rates to start rising again across the market.
"This will inevitably impact confidence in the housing market as both buyers and sellers adjust their expectations, and latest industry figures for both mortgage approvals and completed transactions show demand is cooling. Therefore further downward pressure on house prices is still expected.
"One continued source of support to house prices is the labour market. While unemployment has recently ticked up from very low levels, brisk wage growth would over time help to improve housing affordability, if sustained."
Latest Construction News
05/02/2025
Stockport Mayoral Development Corporation (MDC) and ECF, a joint venture between Homes England, Legal & General, and Muse, have selected Vinci as the preferred contractor for Phase 1 of Stockport 8, a £350 million residential development west of Stockport town centre.
The decision follows a competi
05/02/2025
Vistry Group has finalised contracts for a significant housing development in Hinckley, Leicestershire, securing outline planning permission to deliver 475 new homes in the area.
The development, located east of Stoke Road and north of Normandy Way in the town's northern region, has a projected val
05/02/2025
Wilten Construction has been awarded a second Design and Build contract at Gateway 14 by client Gateway 14 Ltd and Jaynic.
The project involves the development of a state-of-the-art, three-storey Skills and Innovation Centre spanning 35,000 sq ft in the heart of Gateway 14. Designed to achieve BREE
05/02/2025
Knowsley Council has approved a major housing development in Kirkby, giving the green light to 800 new energy-efficient homes in the town's centre.
The decision also secures £7.7 million in Section 106 contributions from developer Barratt David Wilson Homes, further boosting local investment.
The
05/02/2025
Keepmoat Homes has announced plans to invest over £50 million in three new housing developments across Calderdale, aiming to deliver more than 200 new homes.
The developments, undertaken in partnership with Calderdale Council, form part of the North Halifax Transformation Programme, a local authori
05/02/2025
Essential renewal work at Skerne Road level crossing in Driffield has been completed. Over a six-day period, engineers replaced decades-old equipment, installing a state-of-the-art operating system, replacing the level crossing deck, and resurfacing the road.
The newly installed operating system is
05/02/2025
Construction firm GRAHAM is currently carrying out essential restoration work at the National Railway Museum in York, replacing the Grade II listed roof structure at Station Hall.
Originally built between 1875 and 1877 as a goods station, Station Hall now houses the museum’s six royal carriages.
05/02/2025
Mezzanine floors are commonly associated with additional storage or expanded floor space, but did you know they can also have a profound impact on employee productivity and morale? At Doity Engineering, we specialise in designing and installing mezzanine floors for
05/02/2025
Construction work is commencing on a new solar array at Weeton Barracks in Lancashire that will generate over one third of the site’s energy needs.
The work has been funded under the British Army’s Project Prometheus, a scheme that is increasing renewable energy across the army estate through inst
05/02/2025
The regeneration of Hartlepool's waterfront has reached a significant milestone with a £631,000 grant from The National Lottery Heritage Fund.
The funding will support the development phase of the 'Tides of Change' project, aimed at transforming the visitor experience at the Museum of Hartlepool a
