The first Halifax Price Index of 2017 was recently released and Head of lending at Mortgage Advice Bureau comments, the year appears to have ended on a positive note with house prices on the up.
Brian Murphy, Head of Lending for Mortgage Advice Bureau comments:
“The data released from the Halifax indicates that property market in the UK ended in resilient shape, with house prices increasing 1.7% month on month, 6.5% year on year and also a quarterly rise of 2.5%.
“Underlying trends that were prevalent throughout last year are likely to have been contributing factors, namely paucity of available stock and record low interest rates, and these aspects look set to continue as we move into the new year. If this is the case, as the Halifax report suggests, the market could remain steady although growth could possibly plateau, with transaction and lending levels potentially remaining static.
“The report also highlights that mortgage approvals for house purchases increased in November, suggesting a ‘down the line’ uptake of activity that we may well see reflected in January and February’s figures, once released. This potentially indicates that, despite the current uncertain outlook for the UK economy, consumers still feel confident enough to consider moving and putting their hard earned cash into bricks and mortar. This demand, alongside the other contributing factors, could well underpin market forecasts, such as those expressed by the Halifax, of between a 1 and 4% increase in property prices overall for 2017, suggesting that the market remains consistent as we head into 2017.”
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