The Halifax house price index returned to positive territory in February with a 0.1% increase month on month. Whilst on the face of it this may seem a pleasing development for the industry, the rise was smaller than expected and also included a downward revision to last month’s already disappointing reading, so on balance, the residing feeling will likely be one of more disappointment.
Despite widespread doom mongering in the aftermath of the EU referendum, house prices have held up fairly well with last month’s decline of 1.1% coming after a run of 4 consecutive increases. With the triggering of Article 50 seemingly imminent, the moment of truth for homebuilders seems to be approaching and with both Taylor Wimpey (LON:TW) and Barratt Developments (LON:BDEV) having recovered the bulk of the losses seen in the wake of the referendum, today’s data could sow more seeds of doubt in the minds of already nervous investors.