Halifax dismissed concerns about the collapse of the housing market, despite the falling prices

Britain’s biggest mortgage lender dismissed fears that the housing market in the UK heading for collapse, despite the publication of news of the largest decline in prices since shortly after David Cameron became Prime Minister.

Reporting for a month that traditionally marks the beginning of the spring home-buying season, the Halifax said that prices fell by 3.1%, the sharpest drop since September 2010.

The decline followed an increase of 1.6% in March – means the cost of an average house in the UK has been reduced by £7,140 £ 220,962. For the last quarter is considered a better guide to the underlying trend – prices were 0.1% lower than in the previous three months.

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Russell galley, managing Director of Halifax said demand for property was weak in recent months. However, it is still expected that the annual inflation of accommodation prices will range from zero to 3% this year. In the three months to April, prices rose 2.2% in February to April 2017, compared with 2.7% in the three months to March.

Previous steady fall in housing prices, as a rule, occur only when unemployment is forcing people to sell their homes, but galley said that the British market of workplaces still durable. Unemployment is at its lowest level since 1975, and real wage growth resumed.

The data of housing prices from Halifax

The data of housing prices from Halifax

Values dipped in the UK for the third consecutive quarter, falling in the period from February to April, 0.1%, compared with a decline of 0.1% and 0.7% in the previous three months, according to Halifax.

The lender stated that both quarterly and annual rates fell after reaching a peak last autumn. City analysts say the monthly numbers Halifax tend to be more volatile than other polls.

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Housing prices fall in London for some time, especially in wealthier areas, while values in areas outside the capital is still growing. The latest regional data from halifax showed the typical house price in London was £430,749 the period from January to March, the lowest since the end of 2015.

Jeremy leaf, a North London estate agent, said the latest figures were disappointing.

“We are entering what should be a busy spring season, which tends to set the tone for the rest of the year,” he said.




Housing prices in the UK photo: Halifax

“Recently, the activity and lists picked up, but we find in the market is still very sensitive and only those who are ready to negotiate hard to move on.”

Samuel tombs, senior economist at Pantheon macroeconomics, said, “looking ahead, low consumer confidence and a small increase in mortgage rates suggest that demand will continue to fall.

“Prices will at least fall quickly, only when the majority of homeowners are forced to sell. Unemployment and borrowing costs low and credit freely available, some people were forced to sell their homes quickly. The company has changed the price of housing, therefore, remains the most likely outcome.”

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