Latest data released by Halifax - 5 March 2021
- Prior -0.3%
- House prices +5.2% vs +4.6% y/y expected
- Prior +5.4%
Slight delay in the release by the source. After a relatively robust period of housing market activity, average prices are seen down slightly to start the year but are comfortably much higher than what they were a year ago.
Just take note that with Sunak extending the stamp duty holiday to June, this could spur further strength in the UK housing market in the months ahead.
Halifax notes that:
"The housing market has been at something of a crossroads at the start of this year, with upcoming events key to determining the path of activity and prices over the next few months. The government's decision to extend the stamp duty holiday - one of the main drivers of demand from homemovers during the pandemic - has removed a great deal of uncertainty for buyers with transactions yet to complete.
"The new mortgage guarantee scheme is another welcome development from this week's Budget. Whilst mortgage approvals have reached record highs in recent months, hitting levels not seen since before the financial crisis of 2008, raising a deposit continues to be the single biggest hurdle for first-time buyers to overcome.
"In the longer-term, the performance of the housing market remains inextricably linked to the health of the wider economy. The pace and extent of recovery are still highly uncertain, and much will depend on the ongoing success of the UK's vaccination roll out."
