UK house prices continue to rise, up almost 7% year-on-year

UK house prices were up by 6.7% in the twelve months to November, according to new data.

The latest House Price Index published by the Office for National Statistics (ONS) reveals that in November 2016 the average UK house price rose to £218,000.

This is an increase of £14,000 from November 2015 and £2,000 up on October 2016.

England led the increase in prices with the average price now £234,000, up 7.2% year-on-year. While in Wales a 4.1% increase over the past 12 months brings the average house price to £147,000.

As for Scotland, an increase of 3.3% means that the average price of a house stands at £143,000 and in Northern Ireland the average has risen to £124,000.

London saw house prices rise by 1.8% month on month and 8.1% year on year. In this respect, London still has the highest average house price in the UK at £482,000, followed by the the South East and the East of England, which come in at £313,000 and £278,000 respectively.

However, the East of England recorded the biggest annual increase with price growth of 10.5%.

The lowest annual price growth (3.2%) and lowest average house price (£127,000) can be found in the North East of England.

Russell Quirk, chief executive, EMoov said:

“London, in particular, has managed to shake off the constraints of stamp duty changes and Brexit angst to continue the upward price growth trend, despite many predicting storm clouds on the horizon for 2017.

“It would seem those with the higher average house price are more inclined to sit on the fence and wait out any period of uncertainty in the market, whilst those elsewhere around the UK are benefitting from their ‘get on with it’ attitude.”

Economist Howard Archer at IHS Markit said:

"With housing market activity up from its August lows and the economy currently resilient, house prices look likely to rise modestly in the near term.

"However, we suspect that housing market activity and prices will come under increasing pressure as 2017 progresses. Consequently, we suspect that house price gains over 2017 will be no more than 2%."

 

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