UK house prices on the up once again
House prices across the UK have risen by 1.1% over the month of June according to the latest review by the mortgage lender Nationwide. The average house price in the UK increased by £2,590 with prices hovering around the £211,301 mark. During the months of May and June, the annual house price rose from 2.1% to 3.1%.
London has seen the slowest increase, averaging around 1.2% year-on-year. Robert Gardner, an economist at Nationwide has suggested that: “There has been a shift in regional house price trends. Price growth in the south of England has moderated, converging with the rates prevailing in the rest of the country.”
He added that in the second quarter of the year, East Anglia saw the largest increase in annual growth, recording a 5% increase. The North of England registered a modest increase of 1%.
Mr Gardner added that ‘when viewed in levels, the price gap between regions remains extremely wide’.
“At this point, it is unclear whether the increase in house price growth in June reflects strengthening demand conditions on the back of healthy gains in employment and continued low mortgage rates, or whether the lack of homes on the market is the more important factor.”
Jonathan Hopper, the managing director of Garrington Property Finders said: “For London’s house prices to be growing at the second-slowest rate in the country would have been unthinkable for much of the past decade.” Instead, growth is now spread much more evenly across the country, with the market fragmenting into a patchwork of smaller hotspots and coldspots.”
Lucy Pendleton, the founder of independent estate agents James Pendleton stated that: “The housing market has come up for air, which is incredible in a month that saw one of the least conclusive general elections ever.”
“London had a bad day in the office in June but it always bounces back.
“Thanks to its stellar performance stretching back years, we’ve been confidently relying on London to shrug off any slowdown seen nationwide, but the tables have turned, if only briefly. If this trend continues in July, then that is going to turn some heads.”
What can be deduced from this is that some regions are seeing prices grow quicker than others, but we should not overlook the fact that all the regions in the UK are increasing their house prices. The average stands at around 1.1% for the past month and it looks set to continue to rise until the end of 2017.