Halifax warns house prices are down 0.2% over the last quarter, with a further 0.1% decline in April 2017 to £219,649. The housing shortage, coupled with low interest rates are likely to be propping up prices at present. However, economists fear that we will see a sharp slowdown in activity over the coming months.
Halifax and The Nationwide have reported similar concerns, highlighting the pressure on consumer spending as wage rises fail to keep pace with rising living costs. Political sensitivity could also play a part in the recent figures in the lead up to the General Election. Halifax’s housing economist Martin Ellis said: “Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may be constraining the demand for homes.”