According to the latest data from Halifax, the slight blip in the UK house price, seen in November, is a thing of the past as figures reveal strong growth in December.
In the last month house prices increased by 1.7%, reversing the decline of 0.2% recorded in November. As a result, the average UK house price is now at £208,286. In the past year houses prices have jumped by over £16,000, that’s a rise of over £1,300 a month! Ouch.
In the three months to December, house prices rose 9.5% compared to the same period the year before, with house prices in the last quarter also up 1.6% on the preceding three-month period.
However, the Nationwide HPI measure, put the rate of increase much lower at 4.5% in 2015, less than half of the Halifax estimate. According to these figures, house prices haven’t risen this quickly since 2006, when values soared by 9.9%.
In London as a whole, house prices rose by 12%, however in Newham, East London (home to Stratford’s Olympic village) this has almost doubled, with prices increasing by 22% in 2015!Russell Quirk, Founder and CEO of eMoov commented:
“The latest figures from Halifax seem to reflect an accurate portrait of the UK property landscape. The imbalance of healthy demand and a dwindling supply on the lead up to the Christmas break, was always going to help bump prices up towards the back end of the year.
It comes as no surprise that outer London boroughs and particularly the edges of East London are helping to drive the London market. We highlighted way back in September that central London was stagnating, whilst the demand for property in the outskirts of the capital and the commuter belt were red hot, as more and more homeowners are forced further out of London in search of affordable housing.
Unfortunately, like many areas of London, the result of this is inevitably an increase in prices as there simply isn’t enough housing to meet the demand being experienced.”