House prices increase by 9.7% in the year to February 2016

Last week we saw the publication of the latest Halifax House Price Index. As usual it sheds some interesting light on the housing market. Its main findings are:

• House prices in the 3 months to February 2016 were 9.7% higher then in the same 3 months a year earlier.
• House prices in the last 3 months were 3% higher then in the preceding three months.
• House prices decreased by 1.4% between January and February. This offset much of January's 1.7% rise.
• Increase in areas where homes have risen more in value than owners total earnings.
• Home sales remain on an upward trend - 9.3% higher then 12 months ago.
• Mortgage approval higher. 5% increase in approvals between December and January, now stand at 74,600 approvals, which is the highest level since January 2014.
• House supply remains low but showing signs of slight improvement.
• Number of new homes built increased by 7% between Q3 and Q4 2015. Overall completions were 20% higher in 2015 than 2014 and are at their highest annual level since 2008.

The full report can be accessed at www.lloydsbankinggroup.com/globalassets/documents/media/press-releases/halifax/2016/housepriceindexfebruary2016.pdf