House price growth has slight increase in February

According to the latest house price index from the Halifax, house price growth increased by 0.1% during February, with the new average house price standing at £219,949.

The small increase follows a drop of 1.1% during January. Martin Ellis, the housing economist at the Halifax, stated that property prices in the three months to February, were higher by 1.7% than prices during the previous three months. However, the annual property price growth had fallen to 5.1%, the lowest it had been since 2013.

Ellis added that property prices were increasing due to the low supply of housing, combined with a healthy economy, with employment levels high. Jeremy Leaf, an estate agent from north London, said that the figures don’t completely agree with the data in the latest Nationwide survey, although both reports indicate a relatively stable housing market. Leaf stated that he hoped that the Budget would provide some support for first time buyers.

According to the Halifax, affordability of mortgages has improved in the last 10 years, with the proportion of disposable earnings being used to pay the mortgage falling by 18% since 2007.

During quarter four of 2016, around 30% of earnings were used to pay the mortgage, compared to 48% in quarter three of 2007. https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Harris, the chief executive of SPF Private Clients, said that although mortgages are more affordable now, some borrowers were still struggling to obtain funding, like older borrowers and the self-employed. This makes it imperative for borrowers to seek advice from a CeMAP qualified mortgage adviser.



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