Today’s latest figures from the Land Registry for May 2017 show that on the lead up to the general election, house prices increased by 0.5% month on month, with an annual increase of 4.47%, putting the new UK average house price at £220,713.
This data is in contrast to that of Nationwide and Halifax who reported a slow in price growth during May, although this was largely expected.
The Land Registry bases its figures on property sale completions, where as Nationwide and Halifax look at mortgage approvals.
So it would make sense that during a period of uncertainty, those involved in a sale would look to push this through before the outcome of the election.whilst those looking to secure a mortgage with a view of purchasing a property would put the decision on ice until the result had been determined, whilst those looking to secure a mortgage with a view of purchasing a property would put the decision on ice until the result had been determined.
The East Midlands, North East and Yorkshire and Humber regions have all seen monthly price growth exceed 1%, considerably higher than the UK average.Scotland is also enjoying an upward trend in price growth in comparison to the rest of the UK countries.
Scotland is also enjoying an upward trend in price growth in comparison to the rest of the UK countries after itself being plagued by the additional uncertainty of an independence referendum.
An uncertain market has certainly lead to an unpredictable performance for the UK property market and whilst some homeowners have seen price growth in their area decline rapidly, others have enjoyed a sizable increase, both month on month and annually.
Here are the biggest winners and losers across the board for the month of May, 2017.
Largest Monthly Increases:
Scarborough (+6.63%), East Ayrshire (6.44%), Kensington and Chelsea (6.02%).
Largest Monthly Decreases:
Shetland Islands (-6.79%), Pendle (-5.52%), Isle of Anglesey (-5.38%)
Largest Annual Increases:
Orkney Islands (25.16%), Kensington and Chelsea (17.09%), Maldon (15.64%)
Largest Annual Decreases:
Western Isles (-17.96%), Shetland Islands (-14.68%), City of Aberdeen (-7.77%)
Ken & Chelsea (£1,501,966) – Outside of London: South Bucks (£617,252)
The latest government figures show that where actual property sale completions are concerned, the market maintained a slight upward trend in May, up 0.5%, ahead of June’s election, whereas mortgage approval data from the likes of Nationwide and Halifax showed a slow in pace in the same time period.
Although this provides two contrasting views of the UK market, it makes sense that those in the middle of the sale would move quickly to push it through before any detrimental election impact on their property value occurs. Whilst those looking to buy a property would put their mortgage application on ice until the political storm clouds had passed.
The UK property market at present is as unpredictable as the economic and political landscapes that are influencing its buyer and seller demand. But whilst these top line figures paint a worrying picture for UK homeowners overall, it is important to note that annual growth is still up and there are still areas of the nation performing very well where property price growth is concerned.
In the current UK summer property raffle, homeowners in the Shetland Islands, Pendle and the Isle of Anglesey will be going home rather annoyed that their property has seen the largest monthly fall in value. However, those in Scarborough, East Ayrshire and Kensington and Chelsea will be delighted that their purchase has materialised into first place property price growth.Russell Quirk