United Kingdom: House prices edge up in January
January 30, 2017
House prices in the United Kingdom increased 0.2% in January compared to the previous month in seasonally-adjusted terms, which was down from the 0.8% increase observed in December, according to the Nationwide Building Society (NBS). On an annual basis, house prices rose 4.3% in January, down from 4.5% in December and marking the smallest rise since November 2015. The average house price in January was GBP 205,240 (January 2016: GBP 196,829).
According to the NBS, the outlook for the housing market this year remains unclear, due to the uncertainty over the country’s future economic trajectory. While the economy held up well last year, with continuing low unemployment and healthy growth, the NBS predicts more pressure on real wages and a softening of employment growth going forward. The NBS concluded by stating that, “we continue to believe that a small rise in house prices of around 2% is more likely than a decline over the course of 2017, since low borrowing costs and the dearth of homes on the market will continue to support prices.”
Author: Oliver Reynolds, Economist