United Kingdom: Housing market strengthens slightly at the end of the year
January 3, 2020
According to the Nationwide Building Society (NBS), house prices in the United Kingdom rose 0.1% month-on-month in December, down from November’s 0.5% increase. On an annual basis, house prices rose 1.4%, up from November’s 0.8% increase and marking the strongest annual growth rate in over one year. The average house price in December was GBP 215,282 (December 2018: GBP 212,281). That said, the property market still remains fairly subdued, against a backdrop of moderate economic growth and pessimistic consumer sentiment.
Looking ahead, house prices will likely rise at a mild rate, supported by low unemployment. Brexit developments will have an important bearing on prices, due to the impact on consumer confidence and the jobs market.
Author: Oliver Reynolds, Economist