Mortgage Advice Bureau comments on the Halifax House Price Index for December

Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:

“Homebuyers’ spirits will be lifted by the slowing rate of house price increases in the second half of last year, as today’s Halifax data shows. There is a widespread expectation that prices will rise at a much steadier rate this year, which suggests that homeowners will continue to enjoy equity gains while homebuyers should face less of a race against time in the purchase market.”

“Low inflation also means that rock bottom mortgage rates will remain in healthy supply for the foreseeable future. With Barclays launching the first ever sub-3% ten-year fixed rate yesterday, other lenders are unlikely to rest on their laurels. There is every chance of more headline-grabbing rates appearing across the market before rates begin to climb.”

“Moderate house price growth suggests the market is now settling into a more steady growth trajectory. After a topsy-turvy ride in 2014, credit conditions are looking good for the early part of this year. Stamp duty changes should encourage a further pickup in first time buyer numbers to build on the progress made last year. The stage is set for new home building commitments to be made in the build-up to the election to address long-term housing supply and affordability pressures.”