The fall in the rate of house price growth post-Brexit looks to be coming to an end. A study by Halifax showed house prices grew on average 0.8% in the month of November, continuing the recent trend of recovery. Growth is at a far slower rate than previously, due to the Brexit uncertainty, but buyer confidence and demand appears to be returning at a slow and steady pace.
Key Takeaways:
- House prices picked up pace in November and will keep rising in the months ahead, but a slowdown in activity next year will hurt the economy.
- Looking ahead, 14 per cent expected prices to increase in the next three months, while 40 per cent predicted rises over the next year
- But, the increase is coming in spite of a slowdown in activity. In short, the drop in transactions is the result of a shortage of supply, which remains below renascent demand that is supporting valuations.
“Prices are being boosted by the continuing squeeze on supply.”