House prices rose in January as the results of December’s general election appear to have brought some political stability, new data shows.
Home prices rose 4.1% in January compared to the same period last year, according to the latest Halifax home price index.
The data also revealed that house prices rose by 0.4% on a monthly basis.
“Regardless of political persuasion, the election result provides a clear path forward and improves market sentiment,” Ian McKenzie, chief executive of the Property Professionals Guild, said in a statement.
“As there are signs, however slight, of a return to stability in the market, the flames in the real estate market have been rekindled, with activity once again on an upward trajectory and expected to continue at a moderate pace in the coming months. ”The CEO continued.
Halifax Managing Director Russell Galley also commented on the data: “A number of key market indicators continue to show signs of improvement. We are seeing increased buyer and seller activity and increased trading, consistent with reduced uncertainty in the UK economy.” .”
“However, it is too early to say whether we have turned a corner. The recent positive numbers actually indicate that activity that was originally expected to occur last year was delayed by economic uncertainty. So while there is no doubt that housing market activity has increased in recent months, how long this continues will depend on housing policy, the broader political environment, and economic trends. “Yes,” Russell Galley continued.
Regarding the future, Russell Galley added: “Looking to the future, we expect house prices to rise at a moderate rate over the course of the year. Demand is likely to continue to outstrip the supply of properties for sale across the UK, with the pace of new construction slowing. There is also increasing pressure on prices for housing loans. Affordability should remain largely positive, but accelerating rental growth means many first-time buyers will have a major challenge raising the required deposit. We will continue to face this.”
