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House price growth slows again

Sarah Davidson

December 4, 2014

Prices rose by 0.4% monthly and 0.7% quarterly to stand at £186,941.

On an annual level house price growth stands at 8.2% to November, down from 8.8% to October.

Martin Ellis, housing economist, said: “Receding buyer interest combined with a revival in private housing completions has brought supply and demand into better balance.

“These factors have in turn contributed to the easing in house price growth since the summer.

“But housing demand continues to be supported by a strengthening economy, rising employment levels, still low mortgage rates and the first gain in ‘real’ earnings for several years.

“We expect a further moderation in house price growth over the next year with prices nationally expected to increase in a range of 3-5% in 2015.”

Alex Gosling, managing director of Housesimple.co.uk, added: “Evidence points towards more discerning buyers who are taking their time and viewing more properties before making a decision, rather than rushing in to avoid missing out.

“There is no suggestion that buyer confidence is waning, but they have watched as average house prices have crept up and up and that has to start having an impact at some point.

“Stamp Duty changes should hopefully have a positive effect on the lower end of the market and first time buyers particularly, similar to the spike in buyer activity we saw when the government froze Stamp Duty.

“We’ll see over the next couple of months just how significant an impact these reforms will have.”


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