United Kingdom: House prices pick-up in March
March 3, 2016
In March, home prices in the United Kingdom rose 0.8% over the previous month, which was up from the previous month’s 0.3% increase, according to the Nationwide Building Society (NBS). On an annual basis, home prices rose 5.7% (February: +4.8% year-on-year). The average house price was GBP 200,251 (February 2016: GBP 196,930).
According to the NBS, the recent pick-up in activity in the housing market “is likely to have been driven, at least in part, by upcoming changes to stamp duty on second homes, where buyers have brought forward purchases in order to avoid the additional tax liabilities.”
According to the Q1 2016 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 12.2% year-on-year. This is markedly higher than the 4.3% rise that has been recorded in the United Kingdom as a whole. The regions other than London that saw higher-than-average price increases were: Outer Metropolitan, Outer South East and South West.
Author: Dirina Mançellari, Senior Economist