UK house prices continue their steady upward path!

The Office of National Statistic reports annual UK house price growth of 5.2%.

The latest House Price Index from The Office for National Statistics has shown that UK house prices increased by 5.2% in the year to August 2015, unchanged from 5.2% in the year to July 2015.The report confirmed that house price annual inflation was 5.6% in England, 0.8% in Wales, 2.9% in Northern Ireland and -0.9% in Scotland and that annual house price increases in England were driven by an annual increase in the East (8.8%) and the South East (7.4%).

Excluding London and the South East, UK house prices increased by 4.8% in the 12 months to August 2015. When seasonally adjusted, average house prices increased by 0.7% between July and August 2015.The report also revealed that on average, first-time buyers paid 3.8% more than in August 2014. For owner-occupiers (existing owners), prices increased 5.8% for the same period.

Points of interest

• Prime country house prices continue to rise.
• North East house prices slip in September.
• FTB house prices outpace rest of market.
• ONS: house prices up 5.7%.  

This measure of house price growth across England and Wales may not be setting the world on fire, but it’s certainly showing it has legs’ This growth is primarily being underpinned by sturdy demand and solid activity at the bottom of the property ladder and continues to outdo rises in wages and consumer prices. UK Inflation turned negative yet again this week. 

The cheaper northern regions are experiencing the fastest growth in property sales, while a shortage of property stock on the market in the south is slowing activity. The most frequently paid property price across England and Wales is just £125,000, mirroring the level at which stamp duty becomes payable, and reflecting the impetus that has been injected in the first-time buyer market recently. Also, the lower to mid-range properties priced between £180,000 and £360,000 are seeing the fastest increases in value, while the shift in stamp duty bands continues to slow growth at the higher end of the market, and prices above £600,000 are reported to be largely stationary.

While many buyers may be tempted to hang on to their current property in the hope that the equity will increase further, for those upsizing the incremental increase in price on their next home will be even larger. There is currently a back-log in the supply of new homes and the mix of stock in the market is not currently fulfilling the needs of the population. If people see that it may actually be disadvantageous to hold out on selling-up and moving on in the hope that house prices will increase further, we may see more homes suitable for first-time buyers coming onto the market.

Tony Wing DipSurv MRICS FNAEA
Sales Director
Lincoln Office
Email: tonywing@robert-bell.org
Tel: 01522 538888
Twitter: @robertbellandco

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