Property price growth eased in Q2

Property price growth eased in Q2

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Video transcript

The annual increase in UK property values that has been a strong feature of the nation`s housing sector in recent months eased slightly during the second quarter of 2016.

Figures released by lender Halifax in its latest house price review showed that prices in the three months to the end of June this year rose by a seasonally adjusted 8.4 per cent in comparison to the same period of 2015.

Overall, this represents a quarterly upturn in typical property values of 1.2 per cent from Q1 this year and June itself saw a monthly change of 1.3 per cent.

According to Halifax, the average home value in the UK now stands at just under £217,000.

The results continue to prove positive reading for the sector in general, but this latest data does show the annual rate of growth for the quarter had diminished from previous periods.

Indeed, the figure of 8.4 per cent growth in Q2 this year was markedly lower than the result of 9.2 per cent that was registered in Q1.

It also represents the lowest quarterly price growth for the market overall since July last year.

Responding to the latest data, Halifax housing economist Martin Ellis stated that there is now growing evidence that the pace of house price growth in the UK could be slowing, as a range of economic and social factors impact the sector.

`House prices continue to increase, albeit at a slower rate, but this [data] precedes the EU referendum result, therefore it is far too early to determine any impact since,` he concluded.

Indeed, the repercussions of the UK`s vote to leave the EU, which came at the end of June, will have shown little influence on these latest results.

Data collected over July and the coming months will instead be far more representative of the overriding mood in the UK property sector in the wake of this momentous decision.

Looking forward, it is difficult to predict how the property sector will react to such an unprecedented and far reaching decision as Brexit, but what is clear at present is the fact that prior to this outcome, the market had already started to show signs of weakening momentum.

It now remains to be seen if the impact of Brexit will reverse the strong gains in value that have been witnessed across the property market during the last year, but only time will tell how the market reacts in the long-term. 

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