- Prices in the three months to September were 8.6% higher than in the same three months a year earlier
- House prices in the latest three months (July-September) were 2.0% higher than in the preceding three months
Commenting, Martin Ellis, Halifax housing economist, said:
“House prices in the three months to September were 2.0% higher than in the previous quarter. This measure of the underlying rate of house price fell from last month’s 3.0%, to its lowest since May. The annual rate eased from 9.0% to 8.6%.
“Housing demand has been strengthening recently, underpinned by economic growth, rising real earnings and very low mortgage rates. Increasing demand is combining with very low supply to drive robust underlying house price growth. There is little reason to expect any fundamental shift in the key market drivers over the coming months.”
Key facts House Prices Housing Activity
• House prices in the latest three months (July-September) were 2.0% higher than in the preceding three months (April-June). The quarterly rate of change fell from August’s 3.0%, to its lowest since May (2.1%).
• Prices in the three months to September were 8.6% higher than in the same three months a year earlier. This was lower than August’s 9.0%, but in line with the average so far this year.
• House prices fell by 0.9% between August and September. This followed last month’s gain of 2.7%. Monthly movements, however, can be volatile and the quarter on quarter change is a more reliable indicator of the underlying trend.
• Flat prices rise most. Separate research showed that there has been a 60% increase in the average price of a flat over the past ten years; significantly higher than the 38% rise for all residential properties. Detached homes (21%) and bungalows (28%) have recorded the smallest rises over the last decade.
• Home sales rose in August. UK home sales increased by 3% between July and August, to 106,480. This was the highest monthly total since February 2014 when sales reached 109,030. Sales in the three months to August were 6.5% higher than in the preceding three months. (Source: HMRC, seasonally-adjusted figures)
• Mortgage approvals increased for the third successive month in August. The volume of mortgage approvals for house purchases – a leading indicator of completed house sales – increased by 3% in August to the highest level since January 2014. Approvals in the three months to August were 6% higher than in the preceding three months (MarchMay) and 6% higher than in the same three months last year. (Source: Bank of England, seasonally-adjusted figures)
• Supply very low and falling. New instructions by home sellers declined in August for the seventh consecutive month. This helped to push down the stock of homes available for sale again in August, reducing it to a new record low for the third successive month. (Source: Royal Institution of Chartered Surveyors’ (RICS) monthly report)