Weakening buyer demand slows house price rises

Posted on Thursday, October 9, 2014

House prices in September went up 0.6% compared with August, the Halifax has reported.  It leaves average house prices, based on mortgage approvals, standing at £187,188 – up 9.6% on September last year.

Halifax bank's housing economist Martin Ellis, said that demand was weakening. “Annual house price inflation may have peaked. A moderation in growth looks likely during the remainder of 2014 and into next year.”

Meanwhile the RICS said this morning that demand fell for the third consecutive month in September. However, it also noted that there was still no sign of a pick-up in new instructions.

Separately, Zoopla said home owner confidence about further house price growth in the next six months had slipped. Its survey of 6,746 home owners nevertheless found that 88% expect prices in their area to increase (down from 92% three months ago). The survey also found that 33% of respondents believe it is harder to get a mortgage now than three months ago. 

Lawrence Hall of Zoopla said it was not clear whether the “housing market recovery has stalled or simply paused for breath”.