House price 'north-south divide' narrows

Postado Novembro 14, 2017

Across the United Kingdom, annual house price growth stood at 5.4 per cent in September, up from 4.8 per cent in August, according to figures released jointly by the Office for National Statistics (ONS), HM Land Registry and other bodies.

Values in London had the lowest rate of growth at 2.5%, followed by the North East at 4.4%.

The Founder and CEO of online estate agent, Russell Quirk, comments on the index: "The market has continued to splutter along, registering yet more marginal positive price growth despite a sustainably lower level of buyer demand".

It represents annual growth of 5.4 per cent and a 0.4 per cent increase from August, when the average house price stood at £225,956. With the average London home costing £483,568, however, the capital remains by far the most expensive place to live in the country.

Ishaan Malhi, the CEO and Founder of online mortgage broker Trussle, also says: "Many people expressed concern for the housing market after Brexit, but prices are 5.4% higher than they were this time previous year". This was followed by the South West (6.6%) and East Midlands (6.4%).

The latest average recorded house price was £226,000 in September, compared to the £215,000 average in the same month a year ago.

On a month-on-month basis lending fell across all segments of the market except remortgaging (which was unchanged), with mortgages to first time borrowers down 11 per cent, second homers 18 per cent and buy-to-let mortgages declining 9 per cent.

"The Budget is now a little over a week away, and rumours are already swirling about some Government support for first time buyers".

On a regional level, the largest annual growth was in the North West of England, at 7.3% and up from 5% in August 2017. "The mortgage sector is slowly innovating to make the process of buying a home less stressful and time consuming, but, until more housing supply brings down the cost of property, homeownership will remain a pipedream for some".

This is the 10th consecutive month where the growth in London house prices has remained below the United Kingdom average, the report said.

Richard Snook, a senior economist, PwC, said: "The trend that has been emerging over the summer and autumn is the rest of the United Kingdom outperforming London".

He continued: "Our latest market projection, published in July, was for growth of between 3 per cent and 5 per cent in 2017 with 4 per cent as the central scenario". The other notable trend is that these price gains are being experienced on increasingly low transaction volumes, which were 15.2% lower in July 2017 than July 2016.

Mr Snook said: "This does point to a lack of broader market momentum and may lead to a softening in price growth as we move into 2018".

"With housing set to be a key area for the Autumn Budget, we hope to see a real push from the Government to address the chronic issues in the market".