Halifax house price index – “Younger buyers face prices 5 times earnings despite prices being largely unchanged”

The latest Halifax house price index showed that prices grew by 1.5% in March, following a 0.5% rise in February. Prices in the last three months to March were 2.7% higher than in the same three months a year earlier.

Jeff Knight, Director of Marketing at Foundation Home Loans, commented:

“News that first-time buyers are facing prices over five times higher than the average income – with an exponentially higher rate in London – solidifies why affordability continues to impact levels of property ownership and the rental market.”

“Growing demand for both types of property without increasing supply will only push prices up further, so ongoing issues with overdue housebuilding and planning targets not yet met is bad news. For years, millennial home owners and renters have been priced out of the capital. While the current low mortgage rate environment and cuts to stamp duty may be proving favourable for some, it remains to be seen how this will play out regionally.”

Paul Osborn, Chief Executive for Foresters Friendly Society commented:

“Despite continued uneasiness around lingering political decisions and the impact on house prices in top locations across the UK, younger property hunters are still facing a range of challenges, particularly when it comes to affordability. Increasing awareness of products like the Lifetime ISA (LISA) to those under 40 years old is vital not only to maintain activity levels in the UK property market but also to unburden those on that seemingly endless search for their first home.”

“Offering a 25% boost to annual savings, these vehicles are specifically designed to help bridge the savings gap and bring people closer to reaching their long-term financial goals. All too often people struggle with the concept of having to start the saving process early to build up a sizeable nest egg. However, through improved engagement with the range of saving plans available, first-time buyers and young families could feel financially secured.”