UK HPI – House prices remain resilient with 2.8% growth
Falling London house prices are masking resilience elsewhere in the UK, according to the latest UK House Price Index from the ONS.
Its data shows that average house prices in the UK increased by 2.8% in the year to November 2018, up slightly from 2.7% in October 2018.
London house prices saw the lowest annual growth with a fall of 0.7% over the year to November 2018, and have now seen declining growth each month since July 2018.
House price growth in England remains lower than the other countries of the UK, rising by 2.6% over the 12 months to November. In comparison, Wales saw growth of 5.5%, Scotland prices rose by 2.9% and Northern Ireland prices are up 4.8%.
At an English regional level, the West Midlands showed the highest annual growth, with prices increasing by 4.6% in the year, followed by the East Midlands at 4.4%.
On a non-seasonally adjusted basis, average house prices in the UK fell by 0.1% between October 2018 and November 2018, compared with a decrease of 0.3% in average prices during the same period a year earlier. However on a seasonally adjusted basis, average house prices increased by 0.1% over the month.
Jeremy Leaf, north London estate agent and former RICS residential chairman, said: “Price falls in London are masking some resilience elsewhere in the UK and that transaction numbers are holding up reasonably well. However, they don’t reflect the recent Brexit uncertainty.
“On the ground, we are finding that we are in a price-sensitive, needs-driven market, especially at this time of year, which continues to be underpinned by low mortgage and unemployment rates, improving affordability and stock shortages. As a result, we recorded better-than-expected viewings and valuations in early January, despite the Brexit uncertainty.”
Dilpreet Bhagrath, mortgage expert at Trussle, commented: “Some may be surprised to see a rise in house price growth, albeit very modest, however the reality is that the ongoing chronic under-supply of housing is driving prices up ever so slightly.
“With the current uncertainty caused by Brexit, many sellers are reluctant to put their homes on the market, adopting a ‘wait and see’ approach which only continues to exacerbate the under-supply issue in the housing market.
“However, buyers, who are able to navigate the current market and are ready to purchase, are unlikely to be put off by this slight rise in house prices.”
Source: Financial Reporter