United Kingdom: House prices increase further in December
December 30, 2016
House prices in the United Kingdom increased 0.8% in December compared to the previous month in seasonally adjusted terms, which was up from the 0.1% increase observed in November, according to the Nationwide Building Society (NBS). On an annual basis, house prices rose 4.5% in December, up from the 4.4% year-on-year (yoy) growth rate registered in November. The average house price in November was GBP 205,898 (December 2015: GBP 196,999).
The NBS added that, “looking ahead to 2017, house price prospects will depend crucially on developments in the wider economy, around which there is a greater degree of uncertainty than usual.”
According to the Q4 2016 quarterly release, NBS data showed that, geographically speaking, the strongest increases in prices are in East Anglia, where the average house price rose 10.1% yoy. This is markedly higher than the 4.5% rise recorded in the United Kingdom as a whole. Other regions that saw higher-than-average price increases were: Outer South East, Outer Metropolitan area and East Midlands.
Author: Oliver Reynolds, Economist