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House price growth slows to 0.9% annually in UK

The latest index from the Halifax shows average house prices slowed again in October, with a modest rise of just 0.9% over the past year. This extends the largely flat trend which has taken hold over recent months.

On a monthly basis, house prices fell by 0.1 per cent, while house prices grew 0.2 per cent between August and October compared to the previous quarter. According to the latest Halifax House Price Index, the average house price in the UK last month was £232,249.

Russell Galley, Managing Director, Halifax, commented: “Average house prices continued to slow in October, with a modest rise of 0.9% over the past year. While this is the lowest growth seen in 2019, it again extends the largely flat trend which has taken hold over recent months.

“A number of underlying factors such as mortgage affordability and wage growth continue to support prices, however, there is evidence of consumers erring on the side of caution.

“We remain unchanged from our view that activity levels and price growth will remain subdued while the UK navigates economic uncertainty.”

It is somewhat predictable that the UK housing market slows to the lowest rate of house price growth so far this year as we receive yet another Brexit delay. Political uncertainty seems to continue to stilt the UK’s property landscape. With Brexit repacked and on hold until December, it’s unlikely we will see a Christmas miracle to help revive the market.

That said, the UK housing market remains dormant but defiant for the time being. It’s hoped that as political uncertainties thaw, the slow but consistent levels of growth seen this year will start to accelerate once again.

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