UK House Prices Continue To Grow, Halifax Index Shows

Jun 11, 2014

Good news if you’re selling your property: house prices in the UK have been constantly growing in the first few months of 2014, and went up by 3.9% in May, according to Halifax’s latest index.

Moreover, numbers by the leading property lender, and examination of the quarterly figures, put to rest doubts concerning the continuous growth of the market. And the March – May period of 2014 has proven it, with house prices 2% higher than the preceding months of December, 2013 – February, 2014. But monthly movements are inconsistent and the quarter on quarter should be used as a pointer for underlying trends.

The three months to May this year also showed that prices were 8.7% higher compared to the same period a year ago. When it comes to transactions, growth has not lagged behind; in the year to May 2014 they reached 1.142 million, which is a rise of 23% compared to the same period last year, adjusted figures by the HMRC showed.

However, the unbalance between supply and demand continues to drive the increase in prices, Halifax claimed. On one hand, new buyer enquiries are walking a steady line, but on the other, supply on the property market has remained in decline in the last few months.

In the end, though, Halifax mortgages director Stephen Noakes expressed a positive view, saying that the economy is recovering well and housing demand remains strong. He also added that house building is undergoing a wave of revival and this would help balance things out. Also, in the year to March 2014, private housing starts in England went up by 34%, Department of Communities and Local Government said.

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