United Kingdom: House prices grow at slowest pace in 11 months
September 30, 2014
In November, home prices in the U.K. rose 0.3% over the previous month, which followed the 0.5% increase observed in September, according to the Nationwide Building Society (NBS). November’s increase met market expectations, but came in below the 0.5% increase observed in the previous month. On an annual basis, home prices rose 8.5% (November: +9.0% year-on-year), which marked the third consecutive month in which annual prices have moderated. The figure represented the lowest rate in 11 months. The average house price was GBP 189,388 (November 2013: GBP 174,566), marking the highest level on record.
According to the monthly NBS report, the latest indicators provide evidence that the housing market is moderating. NBS added that “there is something of a disconnect between the slowdown in the housing market in recent months and broader economic indicators, which have remained relatively upbeat.”
According to the Q3 2014 quarterly release, NBS data showed that, geographically speaking, the strongest increases in prices are still in the city of London, where the average house price rose 21.0% yoy. This is markedly higher than the 10.5% rise that has been recorded in the U.K. as a whole. The regions other than London that saw higher-than-average price increases were: Outer Metropolitan, Outer South East, East Anglia and Northern Ireland.
Author: Dirina Mançellari, Senior Economist