The latest Halifax house price index has shown a 0.9% month on month decline, coming in well below both the consensus forecast and prior readings. The figure represents the second worst since the EU referendum last summer and may serve as a warning sign as to the health of the housing market. Despite the Bank of England refraining from assuming a more hawkish stance in the face of rising inflation at their last policy meeting, it seems to have offered little support to house prices given the latest decline.
It should be pointed out that this data point seems contrary to the prevailing trend and one bad reading doesn’t necessarily mean house prices are set to fall, but with recent surveys of business leaders showing the majority believe that Brexit has already had an adverse impact, and this coming before the process of leaving the EU has even begun, today’s data could be seen as a potentially early warning sign of what is to come.