The latest data from the mortgage lender Halifax shows house prices in June 2018 experienced a 0.3% increase, adding £745 to the value of the average property.
This is the second month in a row that property prices have risen in the UK, which the average home now valued at £215,444, compared to £213,618 in May.
Halifax’s main competitor, Nationwide, showed even rosier growth, with their figures revealing a price rise of 0.5% in June.
Russell Galley, managing director at Halifax, spoke of the positive property market arising in 2018.
“We continue to see very positive factors of continuing low mortgage rates, great affordability levels and a robust labour market. The continuing shortage of properties for sale should also continue to support price growth,” Galley commented.
Prior to May and June, property prices have been more haphazard during the first few months of 2018, leaping up by 1.6% in March and dropping fairly steeply in April, then rising again by 1.7% in May, when properties were 1.9% higher than a year earlier.
Despite the steady growth of house prices, the growth has been referred to as modest.
As Howard Archer, chief economist adviser at EY ITEM Club said:
“We expect house price gains over 2018 will be limited to a modest 2 percent. At this stage, we expect prices to rise no more than 3 percent in 2019.”
This modest growth can be viewed as positive for property investors, vendors and buyers, as investors and vendors can have confidence their property is going up in value, while sellers can have equal confidence that there is unlikely to be unsustainable high rises in the pipeline that makes affordability difficult, especially for first-time buyers who may struggle to get on the property ladder.
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