Housing market is slowing, says Halifax

Martin Ellis, chief economist at Halifax, says the mixed pattern of monthly price rises and falls in December and January is consistent with a slowing market and he predicts annual house price inflation will ease from 10% to 4% by the end of the year. He states: “Negative real average earnings growth for only the second time in 10 years, combined with higher interest rates and slower economic growth, will squeeze householders’ finances, causing potential homebuyers to be more cautious and constraining housing demand.” Two key indicators of housing market activity fell in December, which H...