According to mortgage broker firm The Lender, house price increase has began to slow down in January, and this growth stagnation is expected to continue throughout the year.
The Halifax announced that house prices increased 5.7% at the end of 2016 which was slower than the typical 6.5% annual growth.
These figures have been released on the same day the government expects to launch a housing strategy.
Last week, building society Nationwide also mentioned that the housing market for 2017 looked uncertain.
The Lender is the largest mortgage company in the UK market, their statistics show that house prices were 2.4% higher in the last three months of 2016. In comparison to a year earlier, price increase has began to stagnate, and figures are significantly less than the industry peak that took place in March of 2016 at 10%.
In January property prices have declined by 0.9% in comparison to December, these figures have fostered a mixed view concerning the future of the housing industry.
Founder of the property website Russell Quirk eMoov stated: “House prices in January are never good because of the Christmas season, so people should not take the drop in house prices seriously because things will start to pick up as the year progresses.”
North London estate agent Jeremy Leaf has stated: “The slowing down of the market is not just due to the time of year, there are several other factors that have contributed to the current state of the industry. Consumers are worried about the state of the economy at present, general costs of living as well as the rise in inflation are all contributing to the decision making process when it comes to purchasing a property.”
According to the lender first time buyers have increased by 7%. However, these figures are still below average.