UK House Price Index - a member's perspective

Monday 19 September 2016

NAEA Licensed agent and CEO of March and Parsons comments on the latest UK House Price Index which replaces the previous house price indices separately published by the Land Registry and the Office for National Statistics.

The figures are particularly interesting as it's first full month's figures since the referendum back in June. 

Key findings:

  • Average house prices in the UK increased by 8.3% in the year to July 2016 (down from 9.7% in the year to June 2016), continuing the strong growth seen since the end of 2013.
  • In England, the July data showed an annual price increase of 9.1% which takes the average property value to £232,885. Wales showed an annual price increase of 4.0% which takes the average property value to £144,828. London showed an annual price increase of 12.3% which takes the average property value in the Capital to £484,716. 

  • The average UK house price was £216,750 in July 2016. This is £17,000 higher than in July 2015 and £1,000 higher than last month.
  • The East of England is the region which showed the highest annual growth, with prices increasing by 13.2% in the year to July 2016. Growth in London remains high at 12.3%, followed by the South East with an 11.9% annual growth.
  • Yorkshire and The Humber saw the lowest annual price growth with an increase of 4.7%. 

  • UK home sales fell by 0.9% in July 2016 compared to the previous month, which means that home sales on a monthly basis remain below levels seen in 2014 and 2015 and before the stamp duty changes in early 2016.)

View full HPI report

David Brown, NAEA Licensed member and CEO of Marsh & Parsons, comments:

“It’s been nearly three months since the referendum and London, which voted overwhelmingly to remain, seemed to approach the market with more caution. However, it is extremely pleasing to see that the definitive UK House Price Index clearly indicates that London is shrugging off any negative sentiment about Brexit.

“The ONS data shows that London is again leading the way with a yearly uplift of house prices in the capital of 12.3% to July - only surpassed by the Eastern region where values are much lower. The prime end of the market has undoubtedly seen challenges as a result of George Osborne’s considerable stamp duty hikes – but we hope that we may see these reversed in the upcoming autumn statement.

“The general picture is that the property market in London is returning to normal, and that has to be positive for buyers and sellers alike.”

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If you're an experienced estate agent and NAEA member and would like to be contacted to provide commentary or analysis on housing market reports, please get in contact - just email guyparker@nfopp.co.uk with the subject line 'commentary and analysis'