United Kingdom: Increase in house prices accelerates in August
September 1, 2016
In August, home prices in the United Kingdom rose 0.6% over the previous month, which was above the 0.5% increase seen in July and marked the highest reading in five months according to the Nationwide Building Society (NBS). On an annual basis, home prices rose 5.6% (July: +5.2% year-on-year). The average house price was GBP 206,145 (August 2015: GBP 195,279).
According to the NBS, “the pick up in price growth is somewhat at odds with signs that housing market activity has slowed in recent months. New buyer enquiries have softened as a result of the introduction of additional stamp duty on second homes in April and the uncertainty surrounding the EU referendum.”
According to the Q2 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% year-on-year. This is markedly higher than the 5.1% rise that has been recorded in the United Kingdom as a whole. Other regions that saw higher-than-average price increases were: London, Outer South East and South West.
Author: Dirina Mançellari, Senior Economist