UK Residential Property Prices Are Still Increasing

UK Residential Property Prices Are Still Increasing

UK residential property prices increased by between 0.3% and 0.6% in June depending on which house price index is viewed

Figures released by Nationwide and Halifax have some disparity; however, both report that residential property prices are increasing. 

Nationwide report that UK residential property is valued 1.9% higher than a year ago with the typical UK home worth £168,941 (GBP). 

Halifax report that UK residential property is 3.7% higher than in the same three months of 2012.

The data from Nationwide shows that the southern regions of England, especially London, continued to record stronger rates of property price growth and London also tops the table of property price growth in the second quarter index.

Overall the price of a typical residential property is up 1.4% compared with the same quarter in 2012.

10 of the 13 UK regions saw annual property price rises in the second quarter of 2013, however, Northern Ireland is still the worst performing region with property prices down 2.1% in the second quarter of the year.

London property prices increased by 5.2% compared with the second quarter of last year and the city has seen the greatest recovery in property prices of any region with prices now 5% above their 2007 peak at £318,214 (GBP).

Wales saw a drop in property price growth but the news is still positive, annual property price growth went from 2.5% in the first quarter of 2013 to just 1.2%.

Scotland continued to see property price falls, with property prices down 1.2% year on year.

In the last 12 months

  • London has seen average property prices rise by 5.2% to £318,214 (GBP)
  • East Anglia property prices were up 3.6% to £172,567 (GBP)
  • South East property prices climbed 2% to £202,132 (GBP)
  • South West property prices were up 1.5% to £188,923 (GBP)
  • East Midlands saw property prices up by 1.5% to £142,349 (GBP)
  • Wales property prices were up 1.2% to £133,432 (GBP)
  • West Midlands property prices were up 0.8% to £148,220 (GBP)
  • In the North property prices were up 0.8% to £115,763 (GBP)
  • North West property prices were up 0.3% to £135,262 (GBP)

In Yorkshire and Humberside prices fell by 0.8% to £133,283 (GBP), in Scotland they were down 1.2% to £134,611 (GBP) and in Northern Ireland prices fell 2.1% to £108,116 (GBP).

Northern Ireland property values have remained negative for the last 12 months, with a 2.1% annual drop in property prices and a 2.7% quarterly fall. Belfast was the only area to see prices increase, with annual growth of 4%.

In London prices reached a new record high of £318,214 (GBP), some 5% above their 2007 peak. Newham saw the strongest growth, with prices up 16% year on year, whilst Redbridge saw the weakest growth with a 5% year on year fall.

Data from Halifax shows that residential property prices in the UK were 2.1% higher in the second quarter of 2013 than in the first three months of the year and as a result, house price growth between the latest three months and the preceding three months edged above the 1 to 2% range that it had been in throughout the preceding five months and the biggest increase on this measure since January 2010 when it was 2.9%.

Property purchasing activity has also improved in recent months. Both residential property sales and mortgage approvals for property purchases increased during May 2013.

Martin Ellis, housing economist at the Halifax commented:”Improved confidence in both the housing market and the economy, combined with a shortage of properties available for sale, appear to be pushing up house prices. The Funding for Lending Scheme is also likely to be boosting the market by helping to reduce mortgage rates. There are also early indications that the Help to Buy equity loan scheme may be stimulating demand. Despite these signs of improvement in the market, the still subdued economic background and weak income growth are expected to remain significant constraints on housing demand and activity during the second half of 2013.”

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