Halifax figures show third consecutive month of growth – Thoughts from the Industry
The latest Halifax House Price Index for August shows that: –
- On a monthly basis, house prices increased by 0/3% in August.
- This was the third consecutive monthly increase seen.
- House prices were also up 2.2% on an annual basis although this annual rate of growth had cooled from the 2.5% seen in July.
- The new average house price now sits at £299,331.
Thoughts from the Industry:
Nathan Emerson, CEO at Propertymark:
“With the number of listings, sales agreed, and stock levels higher than this time last year, and with some banks offering specific help to first-time buyers to take their first step onto the housing ladder, this is a sign that the housing market is holding firm.
“However, the latest announcements from the UK Government about reforming Stamp Duty and charging landlords with National Insurance contributions ahead of the next Budget will continue to add further uncertainty for many potential buyers and sellers. This may delay moving plans for a number of people until they know for sure what is likely to happen next. Therefore, we need to see further clarity from the UK Government sooner rather than later.”
Guy Gittins, CEO of Foxtons:
“Following interest rate reductions, improving mortgage affordability and the increasing number of higher loan-to-income ratio products available, we’re now seeing the uplift in mortgage market activity begin to convert into transactional growth. In turn, the rate of house price growth is starting to accelerate.
Market momentum remains steady and this underlying stability is encouraging buyers and sellers back into the fold, albeit with a degree of caution ahead of November’s budget.
For those looking to sell, the key to success is a pragmatic approach to pricing in line with current market conditions.”
Marc von Grundherr, Director of Benham and Reeves:
“Another month of measured house price growth and the third consecutive monthly increase seen confirms what we’ve been seeing on the ground – a slow but steady market trajectory that demonstrates buyer and seller activity is building, albeit gradually.
Whilst the market has stabilised considerably in recent months, there’s now a new layer of uncertainty hanging over us as we look towards the Autumn Budget and this is likely to keep many buyers, in particular, sitting on the fence for the short term.
However, for many, this isn’t about the threat of higher costs or new taxes, but rather the possibility of stamp duty being scrapped altogether. Understandably, buyers are keen to wait and see if such a significant financial barrier is removed and should the government take that step, we can expect a sugar rush of sudden house price inflation as buyer activity is supercharged like never before”
Verona Frankish, CEO of Yopa:
“House prices continue to edge higher, underlining the resilience of the market in the face of wider economic pressures and the continued drive from the nation’s homebuyers to climb the ladder.
Improved mortgage affordability is encouraging more buyers to return and this is a trend that is only likely to build as we approach the final stretch of 2025 and the rush to complete before Christmas.
However, the prospect of a stamp duty reform is a powerful incentive which may temper this usual seasonal surge in activity, at least until the dust has settled on the Autumn Budget.”
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