United Kingdom: House prices pick up in April
March 30, 2015
In April, home prices in the U.K. rose 1.0% over the previous month, which followed the weak 0.1% increase observed in March, according to the Nationwide Building Society (NBS). The figure marked the fastest increase since April 2014. On an annual basis, home prices rose 5.2% (March: +5.1% year-on-year). The average house price was GBP 193,048 (March 2015: GBP 189,454).
NBS added that, “the pick-up in price growth has occurred even though the pace of activity in the housing market has remained fairly subdued in recent months. Indeed, the number of mortgage approvals is still well below its long run average and 20% below the levels recorded in early 2014”.
According to the Q1 2015 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 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