Halifax has revised its forecast for house price inflation from 4 per cent to 6 per cent for the year but warns it expects the pace of growth to slow in the second half of the year.
The shift brings the UK’s biggest lender’s projections for the year in line with Nationwide Building Society, which says it is maintaining its expectations that pro-perty prices will grow by between 5 per cent and 8 per cent this year.
Halifax says its revision reflects a greater upward movement in prices than expected during the first four months of the year. The strength in prices was largely driven by a combination of greater economic momentum and more acute supply shortages than predicted.
However, Halifax says an increase of 6 per cent would be one of the smallest rises in house prices since 1995 and below the 8 per cent long-term average recorded since 1983.
But Allied Surveyors chief executive Robert BryantPearson says Halifax’s report does not reflect the current market.
He says: “We have seen a significant change in the last fortnight. The information from the Halifax reflects a house price peak which has now passed and we are facing a period of slow growth and possible stagnation over the coming months.”