House prices in the UK increased by 1.4% in the third quarter of 2017, suggesting the official beginning of the Brexit process has not had much of an impact on the property market. In the three months from July to September prices have seen their fastest growth since February, just before the triggering of Article 50 at the end of March, and the average prices reached a new high.
The data from the latest index report from the Halifax Bank also shows that prices increased by 0.8% in September month on month to an average of £225,109 and are 4% higher year on year. Indeed, the annual rate of prices growth in September was higher than in August when it was 2.6% and at it is the highest growth rate since February. It is also the second month in a row that the annual rate has picked up.
However, Russell Galley, managing director of the Halifax Community Bank, pointed out that while the quarterly and annual rates of house price growth have improved, they are lower than at the start of the year.
‘UK house prices continue to be supported by an ongoing shortage of properties for sale and solid growth in full-time employment. However, increasing pressure on spending power and continuing affordability concerns may well dampen buyer demand,’ he said.
‘There has been recent speculation on the possibility of a rise in the Bank of England base rate. We do not anticipate this will have a significant effect on transaction volumes,’ he added.
