United Kingdom: House prices increase marginally in November
November 30, 2016
House prices in the United Kingdom increased 0.1% in November compared to the previous month in seasonally adjusted terms, which was up from the flat reading observed in October, according to the Nationwide Building Society (NBS). On an annual basis, house prices rose 4.4% in November, the slowest rate in a year and below the 4.6% year-on-year (yoy) growth rate registered in October. The average house price in November was GBP 204,947 (November 2015: GBP 196,305). According to the NBS, “there are some signs that, despite the uncertain economic outlook, demand conditions have strengthened a little in recent months, reflecting the impact of solid labour market conditions and historically low borrowing costs.”
According to the Q3 2016 quarterly release, NBS data showed that, geographically speaking, the strongest increases in prices are in Outer Metropolitan, where the average house price rose 12.4% yoy. This is markedly higher than the 5.1% rise recorded in the United Kingdom as a whole. Other regions that saw higher-than-average price increases were: Outer South East, East Anglia and London.
Author: Oliver Reynolds, Economist