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Wednesday, 14 December 2016

UK house price growth ripples out

Unemployment remains at 11 year low

UK unemployment fell again by 16,000 to 1.62 million, while the unemployment rate held steady at 4.8 per cent in the three months to October, the best in 11 years. 

There has been a huge amount of angst about inflation rising to 1.2 per cent post-Brexit in Britain, even thought this is below target, with the lower pound expected to see more price rises down the track. 

Although total employment was down a touch to 31.76 million, wages growth rose from 2.4 per cent to 2.6 per cent. 

The average UK house price was flat in October at £217,000. 

Average house prices in England were up by +7.4 per cent over the year to £233,000, but there hasn't been much joy elsewhere. 

Around the traps, house prices have generally recovered well in most regions over the past year, with price growth rippling out from central London to the Home Counties. 

Although London prices are +7.7 per cent higher than a year ago, this obscures that prices in prime central London in boroughs such as Kensington & Chelsea are falling with growth spreading out into the less fashionable boroughs such as Barking and Dagenham, and out to places like Luton, Slough, and Basildon in Essex. 

The stamp duty experiment has been an unmitigated disaster, obliterating sales volumes and categorically failing to generate additional revenue as a result, so reforms should be implemented in due course to reinvigorate the home sales market and labour force mobility.