Confidence in UK house market cools - Halifax
By Abigail Townsend
Date: Monday 30 Nov 2020
(Sharecast News) - Confidence in the UK's booming house market showed signs of cooling last month, according to research published by Halifax on Monday.
As survey of homeowners found that fewer households across the UK think the value of their home increased in November compared to October. Just 14% of survey respondents felt the value rose, compared to 17% in October and September.
As a result, the Halifax's November House Price Sentiment Tracker eased to 51.6 compared to 52.4 a month earlier. A reading of 50.0 is neutral, with any figure below indicating that people think prices are falling and a reading above indicating people believe prices are rising.
However, looking forward, more people think their house will be worth more in 12 months' time than those who think it will be worth less. Just over a quarter - 27% - thought the value of their home will have increased by this point next year, while 18% thought it will have decreased.
As a result, the forward looking tracker came in at 54.8, the fourth consecutive reading above 50.0.
Russell Galley, Halifax managing director, said: "People remain cautiously optimistic that property prices across the country will be higher in 12 months' time. However, expectations softened from October, and remain subdued by historical standards. This is unlikely to change significantly while the macroeconomic landscape remains uncertain, with most housing market experts predicting greater downward pressure on house prices as we move in 2021."
The UK's house market has boomed in recent months, fuelled by pent-up demand and a reduction in the stamp duty threshold. But most analysts agree that prices will come under renewed pressure next year, as both the furlough scheme and stamp duty holiday come to an end.
Ipsos Mori surveyed 1,500 adults across the UK between 12 and 16 November for the latest Halifax House Price Sentiment Tracker, which is compiled by IHS Markit.
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