House prices still rising

The latest HPI statistics have been released, showing that house prices continue to rise across the country, albeit at a slower rate than previous months.

The figures show average house prices in the UK have increased by 3.9% in the year to April 2018, lower than the 4.2% growth rate in March 2018. The latest results show that the average house price growth has been slowing down over the past two years, remaining under five per cent for most of that period. The exception was October 2017.

This is its lowest annual rate since March 2017 when it was 3.7%.

The seasonally adjusted rate shows house prices increased by an average of 0.7% between March and April this year, just above the 0.5% rate registered between March and April 2017.

House prices in England provide the main source of growth, showing a 3.7% increase, bringing average house prices in England to £244,000. Wales has shown a good increase, with 4.4% growth over the last 12 months bringing prices to a £156,000 average, with prices in Northern Ireland also enjoying an increase at 4.2%

Regionally, the south west is leading the growth rates at 6.1%, with regional devolution helping to boost West Midlands’ prospects with a 5.9% growth. While the North West saw prices increase by 2.4%.

Once again, London continues its downward trend, with prices reflecting the capital’s market with just a one per cent increase.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “These figures are interesting, albeit a little dated, in that they show house prices are continuing their more modest upward trend with little sign of correction any time soon. Behind the numbers bears out what we’re finding on the High Street – transactions are falling while listings have increased but not making up for an historic shortfall whereas demand is relatively flat.

“As a result, the increase in house prices is more to do with the lack of supply of appropriate property in places where people most want to live rather than a marked improvement in confidence.

“Looking forward, we do not expect major change but do hope more sellers appreciate the difference between vanity and sanity when it comes to recognising these new market conditions.”

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