Halifax forecasts a growth in UK house prices between 3 per cent and 5 per cent in 2015.
The lender predicts that “further moderation in house price growth is likely”, with the prospect of higher interest rates at some point in the year and the deterioration in affordability over the past year key factors curbing housing demand.
Nonetheless, housing demand should be supported by solid economic growth, higher employment, still low mortgage rates and the first gain in ‘real’ earnings for several years.
“We expect to see a more even regional pattern in house price growth during 2015,” says Halifax’s report.
Halifax’s housing economist, Martin Ellis, comments: “The fortunes of the housing market are closely tied to developments in the wider economy. The strengthening in the UK economy has contributed to higher housing demand over the past 18-24 months. There has been an increase in the number of buyers, fuelled by rising confidence and the improved cost and availability of credit. Higher demand, however, has not been matched by an increase in the number of sellers in the market, resulting in strong upward pressure on house prices in some parts of the UK.”
Source: The Movechannel