Halifax Dismiss Fears of Housing Market Crash

1st June 2018  |  12:00am

Halifax Dismiss Fears of Housing Market Crash

Mortgage lender says it still expects annual price inflation of up to 3% despite biggest monthly drop since 2010

 

 

 

Britain’s biggest mortgage lender has dismissed fears that the UK housing market is heading for a crash despite posting news of the biggest monthly drop in prices since shortly after David Cameron became prime minister.

Reporting on a month that traditionally marks the start of the spring house-buying season, Halifax said prices were down 3.1%, the steepest fall since September 2010.

The decline – which followed a 1.6% rise in March – meant the cost of the average home in the UK was cut by £7,140 to £220,962. Over the latest quarter – considered a better guide to the underlying trend – prices were 0.1% lower than in the previous three months.

Russell Galley, Halifax’s managing director, said demand for property had been weak in recent months. However, he still expected annual house price inflation to be between zero and 3% this year. In the three months to April, prices were up 2.2% on February to April 2017, down from 2.7% in the three months to March.

Previous sustained falls in house prices have tended to occur only when rising unemployment forces people to sell their homes, but Galley said the UK jobs’ market remained strong. Unemployment is at its lowest level since 1975 and real wage growth has resumed.

Source: The Guardian