There was widespread concern that a vote to leave the EU could lead to a fall in house prices, and the latest figures from Halifax provide the first hint that this could be the case – the rate of annual price growth is unchanged from last month, while on a monthly basis, prices actually fell.
The figures, taken from the latest House Price Index, show that prices in the three months to July were 8.4% higher than in the same three months a year ago and unchanged from last month to make it the joint-lowest seen since July 2015. On a monthly basis prices fell by 1%, the first fall since April and the strongest since February (-1.5%), putting the price of a typical home in the UK at £214,678.
This remains the second-highest average on record, but the recent slowdown is clear. As Halifax's Martin Ellis stated, "there are signs that house price growth is slowing, with a deceleration in both the annual and quarterly rates of increase in the past few months". At the same time, July's monthly decline largely offset June's increase of 1.2%, suggesting a swift reaction to recent events.
However, those hoping to maintain the value of their property needn't fear just yet. Martin also pointed out that current growth rates remain robust, particularly on an annual basis, with monthly changes being more erratic. "Overall, it remains too early to determine if there has been any impact on the housing market as a result of June's EU referendum result", he said, so it'll take time to establish the full impact.
For now at least, the continued strength of the market combined with low mortgage rates can mean only one thing – now's a great time to consider your options! Uncertainty may be the overriding theme at present, but if you're certain of your own situation, there's no reason to hang around. Check out the top mortgage deals and see if you can benefit.
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