Could the summer lull have caused house price growth drop?

Election Housing ManifestoAccording to the latest figures from the Halifax house price growth has started to slow.

Figures from August have revealed a slight dip in growth. However, buying a property is still 6.9% higher than in August 2015 according to the Halifax.

The average UK house price now stands at £213,930, 0.2% lower than in July.

Although some analysts have attributed this slowdown to the seasonal dip in activity over the summer, many have admitted that it is difficulty to judge what will happen to house prices in the future.

Martin Ellis, housing economist at the Halifax commented “House price growth continued the trend of the past few months in August with a further moderation in both the annual and quarterly rates of increase. There are also signs of a softening in sales activity.”

“The slowdown in the rate of house price growth is consistent with the forecast that we made at the end of 2015. Increasing difficulties in purchasing a home as house prices continued to increase more quickly than earnings were expected to constrain demand, curbing house price growth.”