United Kingdom: House prices increase in August
August 31, 2015
In August, home prices in the U.K. rose 0.3% over the previous month, which followed the 0.4% increase observed in July, according to the Nationwide Building Society (NBS). July’s figure had marked the fastest monthly increase on record. On an annual basis, home prices rose 3.2% (July: +3.5% year-on-year). The average house price was GBP 195,279 (July 2015: GBP 195,621).
According to the NBS, “the annual rate of price growth was the weakest since June 2013; this partly reflects the high base for comparison, since prices increased at a particularly strong rate in August 2014.” The NBS commented that looking ahead, demand will likely be supported by buoyant consumer confidence and all-time lows in mortgage rates.
According to the Q2 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 12.7% year-on-year. This is markedly higher than the 5.9% 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 and East Anglia.
Author: Dirina Mançellari, Senior Economist