House price squeeze as costs bite, says Halifax

The housing market is succumbing to the growing squeeze on consumers, lender Halifax warned on Monday.

Its latest index showed prices down 0.2% over the past three months and sliding 0.1% in April alone to £219,649.

Halifax’s downbeat survey follows similar signals from the Nationwide as the UK jobs market loses steam and the rising cost of living overtakes wage growth.

The latest signs of housing market weakness come at a politically sensitive time as the UK prepares to go to the polls.

Halifax’s housing economist Martin Ellis said: “Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may be constraining the demand for homes.”