UK housing market
The UK housing market has seen an average increase of 1.4% for house prices over the twelve months leading to April 2019 according to the latest published figures, putting the average cost of a house in the UK at £228, 903. View price predictions for 2019.
However, the report published by the Office for National Statistics (ONS) shows this increase is slightly down on the same 12 month period up to March 2019 which saw an increase of 1.6%.
The data provides an insight into the trends of house prices across all the countries in the UK and each major area within each country.
Breaking the data down
The UK House Price Index provides a summary of some of the key house price statistics across areas of the UK.
England saw an overall annual price rise of 1.1% for house prices.
While London may still have the highest average house price at just under £472,000, it has seen an average fall of 1.2% in house prices. When you think of London, this may seem unusual but house price growth has slowed in London over the last three years and is now seeing a decrease. Despite this, London saw an increase of 2.7% in house prices from March 2019.
The driving factor behind the increase in house price growth comes from Wales. All local authorities reported house price increases leading to an average increase of 6.7% across the whole country. Blaenau Gwent enjoyed the biggest growth, boasting a 17% increase. House prices in Wales had an increase of 2.4% over the figures released for March 2019.
Scotland enjoyed an increase of 1.6% to house prices although areas across the country had mixed fortunes. Stirling saw an increase of 8.4% while Aberdeen saw a decline of 6.2%.
The figures for Northern Ireland show growth of 3.5% for the first quarter of 2019.
What does it all mean?
Dating back to 2016 and the EU referendum, house price growth across the UK has slowed but it has still been growing. The uncertainty factor may be responsible for slower growth but considering there had been worries that house prices would plummet, continued growth in the housing market is welcome.
The average house price in the UK is up £3000 from the same period a year ago when many had predicted a collapse.
London’s falling house prices is a continuing trend since the EU referendum where the higher value of London’s properties increases the level of uncertainty surrounding Brexit.
The fact that England saw a rise of 0.7%, London 2.7% and Wales 2.4% points to the Brexit delay as being a factor in the growth as the original leaving date from the European Union was set for Friday 29th March 2019. Read UK construction output ‘drops like a stone’ as Brexit bites.
For a long time, the rest of the UK fell a long way behind London with house price increase and average house price but now there are signs that other areas are catching up.
Overall, the report points to slowing growth in the property market but there are promising signs that a greater balance is coming with the increase of house prices outside of London which had experienced rapid growth over the last twenty years or so.