Pete Wargent blogspot

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

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Friday, 21 August 2015

London house prices rise again

The Office for National Statistics released its UK House Price Index for June 2015, which showed house prices rising by +6.1 per cent in England and +9.0 per cent in Northern Ireland over the past year.

However, annual house price inflation was weak in Wales (+0.8 per cent) and negative in Scotland (-0.6 per cent).

Has UK property been a good investment?

The answer is, it depends.

The UK all dwellings index has surged by a further +1.3 per cent to its highest ever level at 211.0 in June 2015, which is a solid +16.7 per cent higher than its January 2008 level of 180.8.

That said, the returns have been driven almost exclusively by London and some of its surrounding satelitte cities.

The price index for London increased to a record level of 249.1 in June 2015 which is +1.8 per cent higher than the previous record in May 2015 (244.8) and 42.8 per cent higher than the pre-economic downturn peak of January 2008 (174.5). 

Since 2008 there has also been some solid growth in the regions immediately surrounding London such as the South East (+17.5 per cent) and the East (+16.3 per cent).

Elsewhere in regional Britain dwelling prices are often only recovering either to or slightly above their January 2008 levels.