The latest numbers from Land Registry have been released for November and show that the average property price in the UK is £226,071. The price growth over the last year is 5.1% and saw a 0.1% increase month on month.
Northern Ireland enjoyed the highest monthly growth on account of having 3 months of data. However, the North West has the largest monthly increase at 1.4%, closely followed by the West Midlands with 1.3% and Scotland with 1.1% growth rates. The North East suffered the largest drop with -1%, trailed by London with -0.9% and Yorkshire and the Humber with -0.8%.
The Midlands dominate the annual price growth with prices jumping 7.2% in the West and 6.4% in the East. The North West and the South West both increased by 6.2%. Once again, London and the North East were the worst performers in annual price change with 2.6%.
- West Midlands Region 7.2%
- East Midlands 6.4%
- North West 6.2%
- South West 6.2%
- Northern Ireland 6%
- East of England 6%
- South East 5.7%
- Wales 4.5%
- Scotland 3.6%
- York & Hum 3%
- London 2.3%
- North East 2.3%
Cambridge enjoyed the highest annual increase at 16.4%, followed by North Nofolk (13.8%), Swale (12.9%), Manchester (12.7%) and Cotswold (12.6%).
The highest monthly increase was enjoyed by Shetland Islands (8.8%), West Lindsey (6.9%), Horsham (5.3%), Causeway Coast & Glens (4.8%), Forest of Dean and Derry & Strabane are both 4.6%.
Not surprisingly, detached homes are the most expensive across the UK with an average of £340,886, however semi-detached properties enjoyed the best increase with 5.8% to £213,022 from £201,403 last year.
Although the price of new builds hasn’t over the last month, they did enjoy a 12.8% annual change, while existing resold properties dropped by -0.2% in the past month but increased by 4.5% year on year.
The average price paid by first-time buyers increase to £191,376 with 0.6% monthly and 5.5% annually, Whereas buyers who have already owned a home are more likely to upgrade in their property purchases with an average of £261,403.
Although house prices are up annually, a combination of seasonality and a subdued level of buyer interest has resulted in the market running lower on steam compared to previous months.
There are swathes of the UK market that will have seen the value of their property fall or at least plateau over the last year, particularly those at the top end of the market and across the capital’s more prestigious boroughs. However, the market has been propped up for the large part by the UK’s more affordable areas where the marginal reduction in property values has done little to deter the everyday buyer and seller.
While many have been quick to predict doom and gloom scenarios as a result of slower market conditions, these predictions are perhaps a tad overstated and this gradual, more natural adjustment to the UK market is far more palatable than another market crash.
A reduced pace of price growth will no doubt be welcomed by those priced out of homeownership, but these slower market conditions aren’t enough to address the wider issue of affordability, or indeed the severe lack of housing stock.
With a heightened level of buyer interest already returning to the market in 2018, it is likely that an air of stability will soon return and the lack of housing stock to satisfy this demand will raise the bar of unaffordability even further.Russell Quirk