The latest UK House Price Index from the Office of National Statistics shows that average house prices in the UK have increased by 5.8% in the year to February 2017. This is up from 5.3% in the year to January 2017, however, this is still below the average annual house price growth seen in 2016 which was at 7.3%.
The ONS quote the average UK house price was £218,000 in February 2017 and that this is £12,000 higher than in February 2016 and £2,000 higher than last month.
The main increase was in England where house prices increased by 6.3% over the year to February 2017, with the average price in England now £234,000. Wales saw house prices increase by 1.8% over the last 12 months to stand at £145,000. In Scotland, the average price increased by 3.1% over the year to stand at £139,000.
On a regional basis, London has the highest average house price at £475,000, which is then followed by the South East and the East of England, which show an average house price of £312,000 and £282,000 respectively. The lowest average price continues to be in the North East at £124,000.
The March Nationwide House Price Index reports house price growth softening in March with annual growth at 3.5%, a fall of 0.3% month-on-month.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “The annual rate of house price growth slowed in March to 3.5%, from 4.5% in February. House prices fell by 0.3% in
the month, after taking account of seasonal effects.
“There was a mixed picture across the UK in Q1. Six regions saw the pace of house price growth accelerate, six saw a deceleration and one (East Midlands) recorded the same rate as the previous quarter. Interestingly, the spread in the annual rate of change between the weakest and strongest
performing regions was at its narrowest since 1978 at 6.8 percentage points – the second smallest gap on record.
“The South of England continued to see slightly stronger price growth than the North of England, but there was a further narrowing in the differential.”
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