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Official data shows property prices in UK up almost 7% in 12 months to November 2016
Residential property prices in the UK increased by 6.7% in the 12 months to November 2016, according to the latest official data to be published.
Prices were also up 1.1% month on month, taking the average price of a property to £217,928, the figures from the Office of National Statistics (ONS) shows.
The main contribution to the increase in UK house prices came from England where prices increased by 7.2% over the year to an average of £234,000 and by 1% month on month. But in London prices increased by 8.1% to an average of £481,648 and were up 1.8% compared to October 2016.
Wales saw house prices increase by 4.1% to £147,000 but prices were down 0.3% month on month. In Scotland prices increased by 3.3% to £143,000. The average price in Northern Ireland currently stands at £124,000.
The East of England recorded the biggest annual increase in with price growth of 10.5% while the West Midlands saw the biggest monthly rise at 2.2%. The lowest annual price growth was 3.2% in the North East and the lowest monthly rise by 0.3% in the South East.
Sales during September 2016, the most up to date Land Registry figures available, show that the number of transactions in England fell by 22% year on year, in Wales they fell by 10.4% and in London they fell significantly by 39.5%.
According to Ian Thomas, co-founder of LendInvest, despite some knocks, the property market will remain fundamentally strong throughout 2017. He believes that a sustained drive by the Government to increase the supply of new homes and the forthcoming Housing White Paper will add detail to the commitments already made by the Housing Minister to tackle the housing crisis. ‘Industry will be watching with hopes that these announcements will reinvigorate the market,’ he said.
Andy Butts, Sales & Lettings Director at Centrick Property notes that there appears to be an air of cautious optimism in the marketplace.
“After the initial Brexit shock that stalled the market, we saw a steady recovery as 2016 drew to an end and looks to continue into 2017. Potential purchasers and vendors who held off to see both the result of the referendum and its ensuing impact have started returning to the market, spurred on by cautious optimism. Uptake in the first few weeks of 2017 has been brisk with enquiries from both sides of the market.”
He added, “The mid-priced properties are most in demand as there is not enough stock to satisfy demand. With interest rates still at record lows, many buyers are looking beyond the Brexit headlines at their own finances, and deciding that now is the time to buy before rising property prices reduce their purchasing power.”
‘With this week’s jump in consumer inflation, on the back of the PM’s speech, the Bank of England is likely to increase interest rates in coming months. There’s a growing sense that the cheap mortgages won’t last, and this is spurring many buyers into action,’ he noted.
“In January 2013, the average UK house price was £167,617 and as of November 2016, it stood at £218,000, an increase of over £50,000. This is an astonish result and testifies to the strength and resilience of the UK property market as a whole.”
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