Halifax has revised its prediction of house price increase from 4 per cent to 6 per cent for the year, but does warn that it will slow down during the second half of the year.
This change of opinion brings the Halifax in line with Nationwide Building Society who predicted an increase of between 5 per cent and 8 per cent. However, despite the revised increase, Halifax indicated that it would be one of the smallest rises in house prices since 1995.
Our view
The housing market boom has slowed to perhaps something more like the Government require. Stagnation is on the horizon but we suggest this may be a good thing for 12 months or so to give yet another year for wages to catch up with house prices and give more people a chance to get on the ladder.