UK HPI – House price growth remains static at 1.3%

UK house prices increased by 1.3% over the year to September, unchanged from August, according to the latest UK House Price Index from the ONS.

Average house prices increased by 1% in England, 2.6% in Wales, 2.4% in Scotland and 4% in Northern Ireland.

At a regional level, the North West was the English region with the highest annual house price growth, with prices increasing by 2.8%, followed by Yorkshire and The Humber, increasing by 2.2%.

London experienced the lowest annual growth rate, falling by 0.4%, followed by the East of England at -0.2%.

Jeremy Leaf, north London estate agent and former RICS residential chairman, commented: “A surprising aspect perhaps of these figures is that there hasn’t been more of a reduction in view of the recent political turmoil. But what we are finding on the ground is relief that the end of the beginning at least may soon be in sight for Brexit uncertainty. This is resulting in more realism and release of some pent-up demand in expectation of some post-election improvement in activity.

“London still has some way to go to catch up with other parts of the country bearing in mind previously stretched affordability.”

Lucy Pendleton, founder and director of James Pendleton estate agents, added: “A north-south divide is still broadly visible and London remains the poor relation but chaotic price patterns in the capital in recent months appear to have been the precursor to a period of recovery. Two London boroughs have climbed back into the black on an annual basis in the past month, while 20 remain in decline.

“At a granular level, years of national indecision mean the direction of travel for individual boroughs remains more chaos theory than conventional economics.

“As a general rule of thumb, it is just about possible to see a distinction between the fortunes of more expensive areas and those offering better value per square foot but it’s not at all clear and neighbouring boroughs are still experiencing vastly different fortunes.

“At some point these boroughs will have to come together and a general election potentially followed by a rapid Brexit will decide whether there’s a sharp recovery all round.

“The only discernible trend being seen on the doorstep continues to be that realistic starting prices are leading to quicker sales at better prices.

“Property that comes with seven figures attached continues to struggle in premium areas if not priced correctly. However, homes up to around the million pound mark are seeing less drastic reductions.”

Source: Financial Reporter