House Price Growth Could Rise To 4% Next Year

House price growth has remained relatively subdued over the last 12 months, but this could increase in 2019, potentially rising to as much as four per cent.

According to the Halifax UK Housing Market Outlook for 2019, property values could rise by between two and four per cent over the next 12 months. This is above 2018’s average annual growth of zero to three per cent.

Continued low levels of housebuilding will support house price growth, with more timber frame UK properties needed to meet high demand from homebuyers. There is also a shortage of houses for sale on the market, as sellers might be nervous about the impact of Brexit in March.

Russell Galley, managing director for Halifax, was quoted by the Financial Reporter as saying: “[There was] continued uncertainty regarding the future growth prospects of the UK economy.”

Britain is yet to come up with a withdrawal agreement about the impending Brexit and there is still apprehension about how this could affect the UK economy, which is why “the obvious political and economic uncertainty” will continue to restrict house price growth next year.

However, he added: “The biggest issue for the housing market in 2019 will be the degree to which mortgage payment affordability changes.”

According to the latest figures from the Office for National Statistics’ UK House Price Index for October 2018, property values increased by 2.7 per cent across Britain over the year, which falls in line with Halifax’s previous predictions for 2018.

This took the average UK property to £231,095.