Strong economy and supply shortage to support housing market
House price growth is likely to be positive for the foreseeable future, it has been claimed.
The latest Halifax house price index shows house prices fell by 0.5 per cent last month, yet Martin Ellis, Halifax's chief economist, is of the opinion that the housing market is still in rude health.
"The UK economy is in a strong position," Mr Ellis said.
"Sound market fundamentals, including high levels of employment and a shortage in the number of properties available for sale, will continue to support house prices."
He has attributed the slowdown in house price growth, which has seen prices rise by just 0.3 per cent over the last three months compared to the previous quarter, to the interest rate rises effectuated since August last year and negative real earnings growth.
The average home in the UK now costs £197,248, the Halifax survey shows, while annual house price growth is at 8.9 per cent.
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