Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “House prices haven’t been going anywhere fast for a while, and in November, they almost stood still. We’re set for a particularly sluggish year for property overall, with average prices up just 0.7% over the year so far – well behind inflation.
“The stagnation owes a great deal to uncertainty. It’s not just the pre-Budget jitters that pervaded the market and persuaded buyers to wait things out, it’s also the weakening of the labour market that’s making some people worry about taking on new financial responsibilities.
“The new year could see things pick up a little. There’s a decent chance of a rate cut later this month, and mortgage rates have continued to fall. Given that wages are rising faster than both inflation and house prices, it could help bring properties within reach. Coupled with the renewed enthusiasm we often see in January, this could be enough to perk the market up.
“Slower house price rises in the interim will be better news for first-time buyers have more time to work on their deposit, top up their Lifetime ISA, and build their emergency savings before getting stuck in.”
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