6th June 2013
House prices are seeing a significant recovery according to the latest Halifax house price survey. Prices rose 2.6 per cent in the three months to May compared with the same period to May last year and the biggest rise since 2010. The monthly change is a rise of 0.4 per cent on April with pricing now rising for four months in a row. The average house price now stands at £166,898.
The mortgage bank still says that activity is still relatively low by historical standards and the the economy and the relatively weak growth in income are still constraining demand.
Halifax housing economist Martin Ellis says: “House prices continue to pick up gradually. Prices in the three months to May 2013 were 1.5% higher than in the preceding three months. This was slightly higher than the 1.3% increase in the three month-on-three month measure in April. Market activity has also improved slightly in recent months although home sales remain low by historical standards.
“Despite these recent signs of improvement in the housing market, the subdued economic background and the accompanying weak income growth continue to be a significant constraint on housing demand and activity.”
There was also a modest pick-up in home sales. Home sales in the three months from February to April were 2% higher than in the preceding three months (November 2012-January 2013) despite a 5% decline between March and April, according to the latest industry figures.