Posts with tag: average house price

House price growth across the UK was strong at the end of last year, according to the latest figures from the Office for National Statistics (ONS) and Land Registry.

The report shows that house prices rose by an average of 7.2% in the year to December, up from 6.1% in the previous month. This highlights the continuing strong growth recorded since the end of 2013.

However, annual growth was weaker in the second half of 2016 than in the first six months of the year, the ONS reports.

The average UK house price in December was £220,000. This is £15,000 higher than in December 2015, and £3,000 higher on a monthly basis.

House Price Growth Strong at the End of Last Year

The main contributor to the increase in UK house prices was England, where property values rose by 7.7% in the year to December, taking the average price to £236,000.

House prices in Wales increased by 4.7% over the same period, to stand at an average of £148,000. In Scotland, the average value grew by 3.5%, taking it to £142,000. The average price in Northern Ireland rose by 5.7%, to reach £125,000.

Regionally 

London continues to be the region with the highest average house price, at £484,000, followed by the South East and East of England, at £316,000 and £282,000 respectively. The lowest average price continues to be found in the North East, at £129,000.

The highest annual growth of December was recorded in the East of England, at 11.3%. Growth in the South East was second highest, at 8.5%, followed by London, at 7.5%. The lowest annual growth was seen in the North East, where prices rose by just 4.1% over the year.

By local authority 

The local authority showing the largest annual growth in the year to December was the Shetland Islands, where prices were up by 26.1% to stand at an average of £179,000. Low numbers of property sales in some local authorities, such as the Shetland Islands, can lead to volatility in the index, the ONS points out. The lowest annual growth was recorded in the City of Aberdeen, where prices fell by 9.8%, to an average of £168,000.

In December, the most expensive borough to live in was Kensington and Chelsea, where the average home cost £1.3m. In contrast, the cheapest place to buy a property was Burnley, at an average of £74,000.

Comments

The CEO and Co-Founder of LendInvest, Ian Thomas, responds to the figures: “As we head into 2017, we’ve seen slowing rises in property price rises. Despite this, reasonable growth should still be expected throughout 2017.

“We’ve seen from last week’s Housing White Paper that the Government is more committed than ever to fixing the broken housing market. Restoring confidence in the property market will require action by Government to get all parts of the housebuilding sector firing on all cylinders, especially the SME housebuilders, who Government promise to help grow.”

The Founder and CEO of eMoov.co.uk, Russell Quirk, also comments: “There has been a number of sceptics where the state of the housing market in 2016 is concerned and, although the likes of Halifax and Nationwide provide a snapshot of performance, the fact they are based on mortgage approval data, not cold hard completions, will always leave room for doubt.

“But today’s data from the Land Registry provides a concrete view of how the market performed during a testing year and, on the face of it, held up very well, all things considered.”

He explains: “Not only did prices see an increase of 7.2% annually, but, heading into what is a quiet time of year for the market, an increase of 1.4% in prices and an uplift of 0.2% in transaction volume month-on-month is a promising sign indeed for the year ahead.

“Not only did the London market see healthy growth despite the changes to second home Stamp Duty tax brackets, but there is also positive signs across the rest of the nation. The market in Wales, in particular, has really suffered of late, and so a 1% boost on November’s figures will be a welcome sign for Welsh homeowners.”

Quirk concludes: “This latest market insight should spur a renewed confidence in UK homeowners that we have very much weathered the storm and that UK property is an attractive proposition as it has ever been, whether you are buying or selling.”

House price growth in the three months to January eased to an annual rate of 5.7%, down from 6.5% in December, according to the latest House Price Index from Halifax.

January’s slowdown in house price growth followed two consecutive increases in the annual rate, from a low of 5.2% in October 2016. The annual rate recorded for the start of this year is much lower than the 10.0% peak hit in March last year.

On a quarterly basis, house prices rose by an average of 2.4% when compared to the previous quarter, which compares to the 2.5% rate recorded in December – the highest since March (+2.9%).

Month-on-month, house price growth dropped by a slight 0.9%.

The average house price in the UK, as of January, is £220,260.

A Housing Economist at Halifax, Martin Ellis, comments: “The quarterly and annual rates of house price growth remain robust, even though they are lower than in spring 2016. UK house prices continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding, and exceptionally low interest rates.

January House Price Growth Eased to 5.7%

“These factors are unlikely to change materially during 2017. Nonetheless, weaker economic growth and increasing pressure on spending power, along with affordability constraints, are expected to dampen housing demand, resulting in some downward pressure on annual house price growth during the year.”

First time buyers

Halifax has also released its latest First Time Buyer Review, which suggests that the number of buyers purchasing their first homes has risen by 7% over the past 12 months, to reach 335,750.

This was the highest level since the start of the financial crisis in 2007, when it stood at 359,900. First time buyer numbers still remain 17% below the immediate pre-crisis peak of 402,800 in 2006, however.

UK home sales

In 2016, the total number of UK home sales was marginally higher (+0.4%) than in 2015, at 1.23m. Sales in the fourth quarter (Q4) of 2016 were 0.5% higher than in the previous quarter.

Despite this modest quarterly improvement, sales in Q4 2016 were 9% lower than in Q4 2015.

Mortgage approvals 

The amount of mortgage approvals for house purchases – a leading indicator of completed property sales – rose by 1% between November and December last year, to 67,900.

This was the highest level recorded since March 2016, when approvals were boosted by the impending Stamp Duty surcharge for additional homes and buy-to-let properties.

Approvals in Q4 2016 were 9% higher than in Q3 2016, suggesting that property sales could increase over the coming months.

Housing supply 

Regardless, housing supply remains very low across the country. New instructions failed to pick up in December, marking the tenth consecutive month without any improvement in new listings.

As a result, stock levels remain close to a record low, which Halifax claims is severely restricting choice for prospective buyers and constraining market activity.

The Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, comments on the report: “There are those that will, of course, see this marginal monthly drop in house prices as a fulfilment of the Armageddon-style prophecies that have plagued the UK market since the start of last year, with many widely predicting a troublesome year ahead for property.

“But these figures demonstrate the robust, Teflon-style nature of the UK market as, despite a turbulent year for property, it has weathered the storm and continues to see upward price growth both annually and when compared to the last quarter.”

He continues: “January is always a lethargic month for UK property as a result of the Christmas break, and so any fall in house prices at this time of year should be taken with a pinch of salt, rather than a handful of panic. Mortgage approvals have continued to increase, and demand remains woefully low, so it is likely that come this time next month, prices will be on the up again across the board, and this monthly drop will have righted itself.

“Had any other market around the world been subject to such a sustained period of scaremongering and uncertainty amongst buyer and seller as the UK market has in the last year, I expect it would be a different story to the one we are seeing here.”

The CIO and Co-Founder of LendInvest, Ian Thomas, also says: “Figures from Halifax in January indicated higher than expected house price growth, as constrained housing supply maintained buoyancy in prices.

“While there will be growth in prices this year, measures in the Government’s Housing White Paper announced today will tackle the gridlock in supply and will ultimately determine the scale of price growth.”

We will keep you up to date with the release and content of the Housing White Paper at Landlord News.