The Halifax House Price Index in the UK rose 0.8 percent year-on-year in the three months to January 2019, easing from a 1.3 percent increase in the previous period and missing market expectations of 1.5 percent. “There’s no doubt that the next year will be important for the housing market with much of the immediate focus on what impact Brexit may have. However, more fundamentally it is key underlying factors of supply and demand that will ultimately shape the market", Russell Galley, Managing Director, Halifax, said. “On the supply side the most constraining factor to the health of the market is the shortage of stock for sale, although this does support price levels. On the demand side we see very high employment levels, improving real wage growth, low inflation and low mortgage rates. All positive drivers tempered by the challenges of raising deposits. On balance therefore we expect price growth to remain subdued in the near term.”, he added. Housing Index in the United Kingdom averaged 373.52 Index Points from 1983 until 2019, reaching an all time high of 745.80 Index Points in December of 2018 and a record low of 96.10 Index Points in January of 1983.
Housing Index in the United Kingdom is expected to be 762.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Housing Index in the United Kingdom to stand at 785.00 in 12 months time. In the long-term, the United Kingdom House Price Index is projected to trend around 805.00 Index Points in 2020, according to our econometric models.