House prices in September went up 0.6% compared with August, the Halifax has reported.
It leaves average house prices, based on mortgage approvals, standing at £187,188 – up 9.6% on September last year.
The bank said that demand was weakening.
Martin Ellis, the Halifax’s housing economist, said: “Annual house price inflation may have peaked. A moderation in growth looks likely during the remainder of 2014 and into next year.”
Meanwhile the RICS said this morning that demand fell for the third consecutive month in September.
However, it also noted that there was still no sign of a pick-up in new instructions.
Separately, Zoopla said home owner confidence about further house price growth in the next six months had slipped.
Its survey of 6,746 home owners nevertheless found that 88% expect prices in their area to increase (down from 92% three months ago).
The survey also found that 33% of respondents believe it is harder to get a mortgage now than three months ago.
Lawrence Hall of Zoopla said it was not clear whether the “housing market recovery has stalled or simply paused for breath”.
My view is that stock is likely to remain low as despite prices stabilising (or even falling) there is little incentive for vendors to cash in their recent paper gains.
With tighter lending requirements, homeowners face the real prospect of having to downsize if they sell while historically low interest rates provide little incentive to "move now".
Any thoughts on that?
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A 4% reduction (from 92% to 88%) in public thinking house prices will go up hardly represents a catastrophe. Massive lack of instructions across our areas, which means higher valuations and higher sales prices. I think the market needs to go through a transitional phase (it always does after a sharp, sustained rise)…Dare I predict a return to a more stable market next year……oh, just remembered there's an election! The severe lack of instructions must be having an effect on the online agents who rely on a good feed of instructions to make their fledgling business models.
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Oh dear… demand is weakening. I would like to propose a novel diagnosis for this condition that the clever chaps above clearly don't recognise – IT'S AUTUMN. I don't know what others think – I'd kinda like it to be called "Seasonal Demand" because it does what it says on the tin. Of course, the RICS will argue that there is no such thing (like they do with rising damp); the Banks will issue new Lending Rules that mortgages must be limited during what have previously been known in our profession as "better months for selling" in order to smooth out the pesky imperfections in their lending targets – and the NAEA will put the kettle on and a year later check to see if it ever boiled…
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