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Halifax sees house prices 'easing' as inflation moderates | Halifax sees house prices 'easing' as inflation moderates |
(about 1 hour later) | |
The increase in house prices may have started to ease, according to the Halifax, the nation's largest mortgage lender. | The increase in house prices may have started to ease, according to the Halifax, the nation's largest mortgage lender. |
In its latest survey, it said prices across the UK in the three months to the end of August rose by 9.7% - significantly down from 10.2% in July. | In its latest survey, it said prices across the UK in the three months to the end of August rose by 9.7% - significantly down from 10.2% in July. |
The quarterly change was also down. | The quarterly change was also down. |
Prices in the three months between June and August were 3% higher than in the previous quarter, down from 3.5% in the previous month. | Prices in the three months between June and August were 3% higher than in the previous quarter, down from 3.5% in the previous month. |
Martin Ellis, Halifax's chief housing economist, said there had been an improvement in housing supply - both second-hand homes coming on to the market, and increased numbers of new flats and houses. | Martin Ellis, Halifax's chief housing economist, said there had been an improvement in housing supply - both second-hand homes coming on to the market, and increased numbers of new flats and houses. |
"These trends, if sustained, should help to improve the balance between supply and demand, contributing to an easing in the pace of house price growth," he said. | "These trends, if sustained, should help to improve the balance between supply and demand, contributing to an easing in the pace of house price growth," he said. |
The number of new buyers making inquiries also fell in July - the first time that has happened since January 2013. | |
Restrictions | |
The average house price is now £186,270, according to the Halifax, the highest level since April 2008. | |
From July to August, prices rose by just 0.1%. Monthly figures are notoriously volatile, and do not provide an accurate guide to market trends. | |
Nevertheless that compares with a monthly jump of 1.2% between June and July. | |
A number of factors may be combining to limit enthusiasm for home-buying. | |
Among them is the likelihood that interest rates will begin rising at the end of this year, or early in 2015. | |
The Bank of England's Financial Policy Committee (FPC) is also in the process of imposing restrictions on lenders. | |
Borrowers will have to show that they could withstand a 3% rise in mortgage rates, within the first five years of the loan. | |
Lenders will also be limited in the number of riskier loans they can provide. |
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