View more on these topics

Annual house price growth slows to 3.8%: Halifax

House-Home-Property-Ladder-Mortgage-700x450.jpg

House price inflation in March was 3.8 per cent year-on-year, down from 5.1 per cent in February, according to the latest Halifax house price index.

House prices in the three months to March were 0.1 per cent higher than in the previous quarter.

The average UK house price in March was £219,755.

House sales in February were 1 per cent lower than in January, the first decline for five months.

Halifax housing economist Martin Ellis says: A lengthy period of rapid house price growth has made it increasingly difficult for many to purchase a home as income growth has failed to keep up, which appears to have curbed housing demand.

“Nonetheless, the supply of both new homes and existing properties available for sale remains low. This, together with historically very low mortgage rates, is likely to support house price levels over the coming months.”

The biggest gap between rising property values and earnings was in Haringey in London.

House prices in the borough increased by an average of £139,803 over the last two years, exceeding average take-home earnings in the area of £48,353 over the same period.

Legal & General Mortgage Club director Jeremy Duncombe says: March’s figures paint a similar picture to last month’s, showing a continual rise in annual house price inflation.

“Despite many homeowners welcoming these figures, this constant increase in house prices will fall heavily on the shoulders of aspirational homeowners, hoping to make that jump from ‘Generation Rent’ into the homeownership club.”

Recommended

UK-Houses-Building-Homes-700x450.jpg

House prices edge up in February, says Halifax

UK house prices rose 0.1 per cent in February, according to the latest Halifax house price index. The small rise follows a 1.1 per cent drop in January. The average UK house is now worth £219,949, according to Halifax. Halifax housing economist Martin Ellis says: “House prices in the three months to February were 1.7 […]

Halifax keeps top spot in MS quarterly lender survey

As Halifax remains the one to beat in our quarterly survey, some lenders have made huge strides in performance while others have plummeted The past quarter for lenders has been like a game of Snakes & Ladders, with some experiencing their biggest climb or slide to date. Our panel of critics has rated lenders purely […]

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.

Newsletter

News and expert analysis straight to your inbox

Sign up