UK house price growth accelerates

UK house price growth accelerates

Office for National Statistics figures showed house prices increased by 7.7 per cent to the end of November, compared with 7 per cent in the year to October 2015.

ONS reported today (19 January) annual house price increases in England were driven by an annual increase of 10 per cent in the east, south east, and London respectively.

The ONS index also showed that house price annual inflation was 8.3 per cent in England, 1.3 per cent in Wales, 0.4 per cent in Scotland and 4.6 per cent in Northern Ireland.

Ray Boulger, senior technical manager for John Charcol, said: “All the signs are that the market is beginning to pick up but there are huge regional variations and we have to treat these regional figures with caution but overall the figures do confirm the trend that activity is picking up a bit.”

Overall, Mr Boulger predicted a strong market for the next three months, followed by a fall back.

Guy Meacock, director of buying agency Prime Purchase, said: “There are plenty of headwinds, which will keep the housing market in check.

“A referendum on European Union membership, the potential of an interest rate rise and the situation in China, which could be the start of a global slowdown - all these lead us to assume that this market will not run away with itself.”

Jeremy Leaf, former Royal Institution of Chartered Surveyors chairman and now north London estate agent, said: “November was a strong month for the housing market but it is not going to run away with itself.

“We expect things to settle down from mid-March when the market will find a new level, as it will be too late for investors and second home buyers to complete before 1 April to avoid higher stamp duty.”