The housing market in the UK has performed in line with expectations over the past year with prices set to be stable in 2019, according to an end of year analysis from Halifax.
The report points out that 2018 growth has been at the lower end of last year’s forecast of 0% to 3% growth for this year. It predicts broad stability for house prices in 2019 with price growth of 2-4%, although it warns that this will be dependent on the outcome of Brexit, which takes place at the end of March.
It also points out that the current shortage of homes for sale and low levels of house building will continue to support high prices in 2019 and this will constrain demand.
“The housing market in 2018 followed a similar trend to recent years. In line with our expectations, house price growth slowed whilst building activity, completed sales and mortgage approvals all remained relatively flat,” said Russell Galley, managing director at Halifax.
He added: “This was driven by a combination of continued uncertainty regarding the future growth prospects of the UK economy, and the ongoing challenge faced by prospective buyers in building up the necessary deposits.”