October sees surprise fall in house prices

November 12, 2014 by Brendan

House Prices

Mortgage Lender Halifax has recently released findings that suggest October saw an unforeseen dip in house prices. Combined with the lowest quarterly increase for almost two years, it adds to the theory that the housing market is beginning to slow down.

Economists had forecast that there would be a 0.4 percent rise, after a prediction of 0.6 percent for September had been reduced. House prices actually recorded a 0.4 percent decrease.

HIS Global Insights’ chief UK economist says that this is firm evidence of a slowdown within the housing market, and whilst Halifax reported that the slower growth would still be sufficient to meet the demand for housing, it was evident that buyers were concerned about potential increases to the Bank of England rate.

The stricter affordability introduced by the Financial Conduct Authority in April saw the number of mortgages being issued drop in September, as the revised lending criteria was implemented by lenders.

As a mortgage professional, you are best placed to provide advice and support to those looking to buy a new house. Having attained the relevant qualification after completing the necessary CeMAP training, your role is vital in ensuring that your customers understand the process and receive advice as to the mortgage most suitable to their needs.

The economic recovery that Britain has experienced over the last 18 months was initially driven by the housing market, though more recently, signs have indicated that the growth may be losing pace overall.