Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Monday, 11 May 2015

UK house prices up 8.5pc on year

Average UK house price approaches £200,000

Halifax released its UK House Price Index for April 2015, and it showed average house prices rising by 1.6 per cent in the month to £196,412.

Quarterly growth increased to 2.2 per cent, and the average UK house price is now up 8.5 per cent over the past year.

The annual rate of increase has slipped some way below the 10.2 per cent level reached back in July 2014, partly as a result of the Mortgage Market Review twinned with election uncertainty.

Rock bottom mortgage rates and tight supply in the south-east continue to drive the market higher.

Mortgage approvals also increased over the past year despite a small decline in March according to Halifax, while consumer confidence as it relates to the housing market rose to its highest level since July last year.

Significantly this week the UK general election ended in a surprise Conservative Party majority as opposed to the widely expected hung parliament.

A clear majority victory is generally perceived to be good news for market confidence, particularly in prime central London where a flurry of market activity has already taken place.

Despite a number of misguided opinion pieces (or whatever they should be termed) about the London market having "crashed" or deflating sharply, house prices in the capital are actually up by 15.3 per cent over the year to March having crept higher yet again in Q1 2015.

Whether or not the election result sees the London market galloping back off to the inflationary races remains to be seen.

House prices in the south-east have also increased by 11.4 per cent over the year to March 2015 as tight supply bites hard.