House prices stable pre-Brexit

House prices grew by 1.3% in Q4 2018 compared with the same period a year earlier. The average UK price sat at £229,729, dipping 0.4% from the previous quarter, according to Halifax’s monthly house price index. Prices increased by 2.2% month-on-month, following a 1.2% fall in November. Halifax has predicted continued stability in 2019, with price inflation of between 2% and 4%. Richard Galley, managing director at Halifax, said: “This is slightly stronger than 2018, but still fairly subdued by modern comparison. However, this expectation will clearly be dependent on the Brexit outcome, with risks to both sides of our forecast.” Galley said large deposit requirements limit the number of potential buyers. He said anticipated annual pay growth this year will make mortgage payments more affordable, but noted the added risk of high interest rates, which would counter this. He added: “The shortage of homes for sale and continuing low levels of housebuilding both constrain the supply of houses and in turn support high prices, which will continue to inhibit demand in 2019.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette