British house price growth hits 6-year low

British house price growth hits 6-year low

British house price growth hits 6-year low

The figures show a marked slowdown from September and October, when growth stood at 2.5% and 1.5% respectively.

The average house price is now £224,578, according to Halifax's index, after prices fell by a 1.4 per cent in November over October, making it three months of falls out of the last four.

House prices grew at the slowest rate in nearly six years in November as wavering consumer confidence before the UK's departure from the European Union took its toll on the housing market.

Russell noted that Britain's house buyers were still affordable for the variety of purchases due to high employment, wage growth and historically low mortgage rates, though a huge deposit was the main restraining factor.

Across the United Kingdom, property values increased by 0.3% annually in November, following a 1.5% annual uplift in October, Halifax said.

The last time the annual growth rate of house prices was as weak was in December 2012, when the United Kingdom economy was contracting.

Brexit: Theresa May in last-ditch appeal to Brussels to avoid defeat
Speaking to the Mail on Sunday , the PM said a rejection of her proposals would mean "grave uncertainty" for the UK. If the Brexit deal is rejected, ministers have 21 days to state how they intend to proceed.

"This is largely offset by relatively limited supply of new and existing properties for sale, which continues to sustain house prices nationally". Lucy Pendleton, co-founder director of estate agents James Pendleton, said: 'The market has buckled but don't blame Brexit, blame the piggy bank mentality.

However, Mark Harris, chief executive of mortgage broker SPF Private Clients, took a more positive view, saying: "Lenders remain incredibly keen to lend and that is a consistent message we are getting from all of them - they want to do more".

"This year has been remarkably consistent for the market when you consider the uncertainty around Brexit, with interest rates remaining fairly flat - a trend we expect to continue into next year".

Samuel Tombs, the chief United Kingdom economist at Pantheon Macroeconomics, blamed "Brexit uncertainty" for the slowdown in price growth, at a time when unemployment remains near four-decade lows and wages are showing tentative signs of increasing faster than inflation. The fall from 1.5 percent growth to only 0.3 percent correlates with our data showing that withdrawals are outpacing sales for the first time since May 2016, as we expect to see when prices are weak.

The UK housing sector remains one of the most affected by the Brexit uncertainties. "On the ground, lethargy is replacing energy". It's a leading indicator of the housing industry's health because rising house prices attract investors and spur industry activity.

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