Housing market steadies

House prices in the three months to October were largely unchanged compared with the previous quarter, according to the Halifax. The annual rate of growth continued on its recent downward trend, easing to 5.2%. The Nationwide tracked a small 0.1% rise in UK house prices during November, after taking account of seasonal factors. 

This weak growth during the month, trimmed the annual rate of housing slightly to 4.4%, from 4.6% in October. However, whilst price growth has slowed, both lenders report that the low number of homes on the market is likely to keep the demand/supply balance fairly tight and support prices in the quarters ahead, even if economic conditions weaken as most forecasters expect. 

Glenigan has continued to recorded a strengthening development pipeline, with the value of private housing projects securing detailed planning approval in the three months to October 22% higher than a year earlier. The prospect of stable conditions in the general housing market bodes well for new housebuilding, providing housebuilders with the confidence to start development work on approved sites.