0800 060 8698 info@glenigan.com

Request a Call

We encourage you to read our privacy and cookies policy.

The latest data from the Nationwide and Halifax reveal a cooling in house price inflation in recent months. The Halifax index recorded a small 0.1% rise in prices during September. However this follows small declines during the previous two months; prices during the third quarter as a whole were 0.1% down on the previous three months and annual inflation slowed to 5.8% compared to 8.4% during the second quarter. The Nationwide report that house price inflation remained subdued in October with prices unchanged on the previous month and annual house price growth slowing to 4.6% from 5.3% in September.

The weakening in house price inflation may reflect the slowing in property transactions over the summer months.  Property transactions in August on a seasonally adjusted basis were unchanged on July and 6% down on a year ago. The dip in market activity at least in part reflects distortions caused by the introduction of a stamp duty surcharge on purchases of buy to let properties and second homes.

House Prices October 2016

Looking ahead the latest data released by the Bank of England suggest that market conditions are stabilising. The number of mortgage approved in September rose 3%, having fallen for three consecutive months, cutting the year on year decline in approvals to 10% from 15% in August.

Estate agents responding to the September 2016 RICS Residential Market Survey also report that confidence is continuing to return following a significant drop immediately after the EU referendum.  Encouragingly the survey results show new buyer enquiries increased for the first time since February, albeit that the pick-up was only modest. 

The prospect of stable conditions in the general housing market and in particular increased interest from first time buyers will be welcomed by housebuilders. The latest Glenigan Index shows that the value of private housing projects starting on site were 4% up on a year ago, despite being slightly down on the preceding three months. Furthermore the number of schemes securing planning approval has continued to rise. The prospect of strengthening purchaser confidence should encourage housebuilders to start development work on approved sites. 

Not a Glenigan Customer?

Request a free demo of Glenigan today so we can show the size of the opportunity for your business.