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ONS: UK House Price Index Annual Growth Rate Increased in November

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Average house prices in the UK increased by 2.8% in the year to November 2018, up slightly from 2.7% in October 2018. Over the past two years, there has been a slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England.

The lowest annual growth was in London, where prices fell by 0.7% over the year to November 2018, unchanged from October 2018.

The average UK house price was £231,000 in November 2018. This is £7,000 higher than in November 2017. 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 (October 2017 and November 2017). On a seasonally adjusted basis, average house prices in the UK increased by 0.1% between October 2018 and November 2018.

England house price growth weaker than rest of UK

House prices in England grew slower than other countries of the UK, increasing by 2.6% in the year to November 2018, up from 2.3% in the year to October 2018, with the average price in England now £247,000. House prices in Wales increased by 5.5% over the last 12 months to reach £161,000. In Scotland, the average price increased by 2.9% over the year to stand at £151,000. The average house price in Northern Ireland currently stands at £135,000, an increase of 4.8% over the year to Quarter 3 (July to Sept) 2018.

Strongest annual growth in the West Midlands, weakest in London

At an English regional level, the West Midlands showed the highest annual growth, with prices increasing by 4.6% in the year to November 2018. This was followed by the East Midlands (4.4%).

The English region with the slowest annual growth was in London, where prices fell by 0.7% over the year. London house prices have fallen over the year each month since July 2018. The Bank of England November inflation report highlights that the slowdown in the London market since mid-2016 is probably due to the area being disproportionately affected by regulatory and tax changes, and also by lower net migration from the EU.

Property Expert and Yomdel CEO Andy Soloman, commented:
“If the relative calm before the storm has brought a further reduction in house prices, transaction levels and buyer interest, one must wonder what the forecast will be now the political headwinds have hit gale force level following yet another disastrous Brexit vote.

We will no doubt see many buyers and sellers batten down the hatches until further notice but once stability does returns, it won’t take much for the UK property market to dust itself off and activity to pick up once again. The question is, how much damage will have been done before we reach this point and how long will it take to rebuild? ” 

Paul Telford, Director of home seller empowerment platform, OkayLah, commented:
While the estate agency sector itself has suffered as a result of this lethargic market activity, there remains an appetite for homeownership and although Theresa May’s deal may have failed to materialise the UK property market is far from Brextinction.

“The continued debacle that surrounds our European departure will do little to stabilise the current turmoil of the UK property market. Both home sellers and buyers will be unsure whether they are coming or going in the current market climate and this hesitation will no doubt see transactions drop and price growth follow suit for the short term at least.

"For those still intent on buying or selling, a sale can be achieved but now more than ever it requires comprehensive market research, a realistic asking price on entering the market and a little perseverance and patience during the latter stages of a sale.

"Those that arm themselves appropriately with the knowledge to do so will find there is life outside of Westminster, as the world keeps turning and people keep on moving.”  

Source : Insight DIY Team

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17 January 2019

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