House prices in the three months to March were 3.8% higher YoY but growth rate slows

House prices in the three months to March were 3.8% higher than in the same period a year ago; down from 5.1% in February. Prices in the three months to March were 0.1% higher than in the preceding quarter.

Sundeep Lakhtaria, Director at Urban Exposure commented:

“After Nationwide figures last week showed house prices falling month-on-month for the first time since June 2015, it is no surprise that the Halifax data today shows prices flat month-on-month with annual house price growth falling to 3.8%, down from 5.1% in February.

The UK housing market is fcing pressures with the latest Construction PMI showing weaker housebuilding activity, acting as a drag on the construction sector in March, with the Markit/CIPS purchasing managers’ index for construction falling to a below-expectation of 52.2 from 52.5 a month earlier.

Nonetheless, it’s crucial to remember that year-on-year comparisons for house price growth will be difficult over the next few months with the ongoing Brexit negotiations and the recent stamp duty changes. So we will be looking closely at upcoming releases for further clues on the housing market’s direction of travel.”

Martin Ellis, Halifax housing economist, said:
“House prices in the three months to March were
0.1% higher than in the previous quarter; the
lowest quarterly rate of change since October
2016. The annual rate of growth fell further; to
3.8% from February’s 5.1%, the lowest rate since
May 2013.

“The annual rate of house price growth has more
than halved over the past 12 months. A lengthy
period of rapid house price growth has made it
increasingly difficult for many to purchase a home
as income growth has failed to keep up, which
appears to have curbed housing demand.
“Nonetheless, the supply of both new homes and
existing properties available for sale remains low.
This, together with historically very low mortgage
rates, is likely to support house price levels over
the coming months.”

Read the latest HPI data from Halifax.