House prices show first monthly rise since March
House prices in England and Wales increased by 0.3 per cent in November, the first monthly rise since March, according to Your Move’s house price index.
The average house price in England and Wales now stands at £300,859. This gives a modest annual price increase of just 0.9 per cent.
This monthly growth has been fuelled by an increase in transactions, which are up 4 per cent, year on year, in the third quarter of this year, according to Your Move.
Despite these more positive monthly figures, Your Move said that the annual rate of growth in the housing market was still slowing.
The annual growth rate of 0.9 per cent was the lowest it has been since April 2012, and continues the downward trend that started in June. To put this figure in some context annual house price growth stood at 6.3 per cent in November 2016.
A closer look at the regional figures show that the slowdown in the London and South East remains a brake on the national house price figures. Annual house price growth in the remaining regions stands at 3.3 per cent in November, up from 3.2 per cent the previous month.
In greater London house prices fell by 0.3 per cent annually, to give an average house price of £586,987.
This was the only region to show an annual fall in prices over the year. The biggest gains were in the South West, where prices have risen by 4.3 per cent annual – to give an annual price of £281,126.
Wales, the North West, and the East and West Midlands have all recorded annual price increase of more than 3 per cent.
Looking forward, Your Move said there were some “encouraging signs” for 2018 that these figures may point to a “turnaround” in the market.
It’s report said: “First, monthly changes finally seem to be on an upward trend.”
“Second, the relative underperformance of London, which has done much to weaken the national figures, appears to be easing.”
“Finally, buyers in the coming months will benefit from the key budget announcements of an exemption from stamp duty for first-time buyers on home up to £300,000 and more money for the Help to Buy scheme.”
Source: Mortgage Strategy