The Government recently released their new official UK house price index for the month of April, detailing a monthly price increase of +0.6%.
According to the Government the average UK house price is now £209,054 as a result of an annual increase of +8.2%.
Both London and England have not only seen an annual rise, but also a monthly rise since March 2016. This takes the average house price in England to £224,731 and London to £470,025, with a detached property in London now selling on average from a huge £854,209 up 12% over the course of the year.
However, what does this all mean regionally? Commenting for the South West is Emoov’s property expert, Lewis Rossiter. He believes that despite the monthly fall, the property market in the South West remains strong.
South West property prices increase annually but are down from previous month.
The UK house price index has just been published and there are mixed results for the South West region. The average price for a property in the region now stands at £227,404, which represents an annual increase of +6%, which is slightly less than the UK average of 8.2%.
The interesting statistic though is prices in the South West are down from the previous month by -2.8%, which is actually the highest decrease of all the regions in the UK. I would attribute this fall to the previous unprecedented demand in March caused by the new 3% stamp duty surcharge for second homes which came into effect on the 1st April. The South West with our coastal towns and buoyant cities make it a hot bed for second home buyers so it’s no surprise our region was affected the most.
Nevertheless, I would anticipate that following the referendum and we get back to some stability there will be no further decrease for the region this year and we will continue to see prices rise month on month.
One other intriguing stat from the new index was the average monthly price by property type showing terraced houses coming out on top with 9%. This coincided with a recent instruction of ours in Pinhoe, Exeter at £189,950. A two bedroom terraced house, which attracted 21 viewings in just one weekend and multiple offers over the asking price.
If you’re looking for an estate agent in the South West, click here to contact Lewis Rossiter and get a free valuation.