Confidence in the outlook for UK house price growth slipped back in June, according to the Halifax Housing Market Confidence Tracker.
This was after reaching its highest level in four years following the General Election in May, the bank said.
June’s fall in confidence came despite continuing rises in real wages, as well as shortage of property going on to the market. The latter pushed the average house price above £200,000 for the first time ever, according to the Halifax.
The report found that 38% of people now expected average property prices to be 5% or more higher in 12 months’ time – a rise on the 34% who shared this sentiment in March.
Martin Ellis, housing economist at Halifax, said: “Economic growth, together with increasing real earnings growth and historic low mortgage rates are all supporting the continued rise in house price optimism. It’s not been a smooth increase though as while there was a noticeable spike in optimism straight after the General Election result, this has now fallen off slightly.”
Ellis added that the government needed to address the shortage of housing in Britain.
“A key factor in maintaining optimism over house price growth has been the fact that the stock of homes available for sale is currently at record low levels,” he said. “If this growth is to be sustainable then we need to see a comprehensive house building plan rolled out across the UK, and soon.”
