United Kingdom: House prices increase further in October
October 30, 2015
In October, home prices in the U.K. rose 0.6% over the previous month, which followed the 0.5% increase observed in September, according to the Nationwide Building Society (NBS). October’s figure marked a six-month high. On an annual basis, home prices rose 3.9% (September: +3.8% year-on-year). The average house price was GBP 196,807 (September 2015: GBP 195,585).
According to the NBS, “over the past five months annual price growth has remained in a fairly narrow range between 3% and 4%, broadly consistent with earnings growth over the longer term. While this bodes well for a sustainable increase in housing market activity, much will depend on whether building activity can keep pace with increasing demand.”
According to the Q3 2015 quarterly release, NBS data showed that, geographically speaking, the strongest increases in prices are in the city of London, where the average house price rose 10.6% year-on-year. This is markedly higher than the 3.7% 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, Northern Ireland and Outer South East.
Author: Dirina Mançellari, Senior Economist