MNI DATA ANALYSIS: UK House Price Gains Accelerate: Halifax

--Halifax UK Feb House Prices 5.9% m/m; +1.8% 3m/3m; +2.8% 3my/y

     LONDON (MNI) - UK house price inflation soared in February, with

year-on-year growth up 2 percentage points to 2.8% from January's reading

according to data from Halifax, the UK's leading mortgage provider. The result

was the average house price in February was up to stg236,800 from stg223,629 in

January. 

     The more volatile monthly numbers showed house price growth soaring 5.9% in

February. On a quarterly basis, house prices rose 1.8% in the December-February

period relative to September-November. 

     Anecdotal evidence appeared to suggest that the reason for the price

increase was a lack of supply of houses for sale as opposed to a surge in demand

for houses. 

     "The shortage of houses for sale will certainly be playing a role in

supporting prices. House price growth is now at 1.8%, an increase from the 0.6%

fall last month and back at the rate we saw from July to September 2018," said

Russell Galley, Managing Director at Halifax Community Bank.

     "People are still facing challenges in raising a deposit which means we

continue to expect subdued price growth for the time being," he added. 

     The data appears to conflict with survey data as the report itself noted.

The RICS UK Residential Market Survey showed a drop in nearly every measure

reviewed. These included new buyer enquiries, new instructions to sell and

sales. 

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

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