United Kingdom: House prices stabilize in October
November 2, 2016
In October, home prices in the United Kingdom were unchanged from the previous month, which was below the 0.3% increase seen in September and marked the lowest reading since June 2015, according to the Nationwide Building Society (NBS). On an annual basis, home prices rose 4.6% (September: +5.3% year-on-year). The average house price was GBP 205,904 (October 2015: GBP 196,807).
The NBS added that, “data releases point to fairly stable demand conditions in the near term. Mortgage approvals edged up modestly in September, though they remain weak by historic standards. Surveyors report that new buyer enquiries have increased modestly in recent months.”
According to the Q3 2016 quarterly release, NBS data showed that, geographically speaking, the strongest increases in prices are in Outer Metropolitan, where the average house price rose 12.4% year-on-year. This is markedly higher than the 5.1% rise that has been recorded in the United Kingdom as a whole. Other regions that saw higher-than-average price increases were: Outer South East, East Anglia and London.
Author: Dirina Mançellari, Senior Economist