Average house prices in the UK are increasing

House prices in the UK have risen by 6.2% in the year to January 2017, an increase from 5.7% in the year to December 2016, according to the recent UK House Price Index.

The average house price rose by £13,000 to £218,000 in January this year compared to January 2016.  However, this figure still falls below the average annual house price growth recorded at 7.4% in 2016.

The largest contribution to the house price increase was in England where prices rose by 6.5% over the year to January 2017.  Northern Ireland saw prices rise by 5.7%, Wales 4.2% and Scotland by 4% over the last 12 months.

House prices in the East of England showed he highest growth at 9.4%, followed by South East with increases of 8.7%.  In London prices rose on average by 7.3%.  The North East saw the lowest growth with prices increasing by 2.2% over the last year.

CEO of Haart estate agents, Paul Smith commented: “With only a week to go until Article 50 is triggered – house prices remain indestructible as the average person is paying £13,000 more to own a home than the same time last year, reflecting the health and buoyancy of the UK economy seen in the last few months. This certainly chimes with our own data.

However low supply does have a big role to play in rising prices. If the Government could finally stick to their word and take action to substantially boost house building across the UK to meet the needs of families, downsizers and first-time buyers, we could certainly see the UK property market going from strength to strength in the upcoming months. While the Government is focused on the EU we must not lose sight of the challenges here at home.”

Russell Quirk, CEO of eMoov, said: “Although mortgage based indices like Halifax and Nationwide offer an indication on how the market is behaving, this first set of 2017 data from the Government provides a concrete look on how the market has emerged from an up and down 2016.

Despite the seasonal lull towards the end of the year, prices have continued their upward trend and the market looks strong heading into 2017. This continued growth does hinge on next Wednesday’s triggering of Article 50 however. Although many predict an apocalyptic end to the world, there is also a chance it will further stabilise the market as the current period of Brexit limbo experienced since last June will finally come to a close.

In many cases, the uncertainty of an outcome can be far more detrimental than the outcome itself and it is clear that many buyers and sellers have been holding tight on a sale until a decision is made. Despite this, it is actually the markets like the South East and London in particular where the most detrimental impacts of Brexit have been forecast that have continued to see the strongest price growth.”

Full article available on Property Reporter:  http://www.propertyreporter.co.uk/property/house-prices-remain-indestruct4ble.html

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