Halifax house price index: UK house price growth picks up again after pre-election wobble

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UK house price growth finally picked up again in the three months between April and June after two months of falling growth – suggesting confidence among buyers is back after it wavered in the run-up to the General Election.

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Halifax's house price index showed prices increased by 3.3 per cent during the period – up from 2.1 per cent in the three months to May and 2.2 per cent in the three months to April.

Prices were 9.6 per cent higher than the same period a year before, the highest annual figure since September last year, and up 1.7 per cent since last month.

But Halifax highlighted ever-tighter conditions in the market.

"The stock of homes available for sale fell again in May to a new record low. New instructions declined in May for the fourth successive month, contributing to the very low levels of supply.

"At the same time, new enquiries from potential buyers increased in May to its highest level since April 2014, suggesting a modest pick-up in demand."

Jonathan Hopper, managing director of Garrington Property Finders, added that "rumours of an early start too the summer lull are greatly exaggerated".

“The post-election surge, when the market was buoyed by thousands of new instructions and newly confident buyers, has proved to be a relatively short boost.
 
“Despite mortgages being at their cheapest level for years – and the supply of homes for sale being tight in many price brackets – buyers are still intensely value sensitive. Buyer demand is strong but sensible, and buyers are being much more sober in their offering behaviour than in the last boom."