UK house price growth pauses, latest index shows

Taylor Scott International News

Average UK property prices have increased by 6.8% year on year but the growth has paused with values obtained flat lining so far this year. The latest index from haart estate agents also shows that the average price of a starter home has fallen by 2.2%, good news for first time buyers. Overall the index reveals that in February average prices fell by 0.2% to £204,355 compared with the previous month but are still up by 6.8% compared with a year ago. But in London prices are down 1% month on month to an average of £466,990 and down 4.6% compared to February 2014. However, demand is still high with 21 buyers chasing each home for sale in London and 12 potential buyers for each new property nationwide. Paul Smith, chief executive officer of haart, pointed out that new housing stock across the UK materialised in February with supply up almost 11% in a single month which is matched by a similar uplift in buyer registrations, a sign of consumer confidence in the market. ‘So far this year average house prices are showing no significant fluctuations, which is good news for affordability. First time buyers are now benefiting from a dip in the average price of a starter home by 2% annually and from broader economic factors such as low interest rates and Help to Buy incentives,’ he said. ‘Despite this promising start to 2015, the number of new home starts promised post general election by the main political parties falls well short of what is needed and we still lack a strategic long term policy to address supply,’ he explained. He believes that London’s average property prices declining is no bad thing for affordability and sentiment. ‘This is no boom and bust but the beginning of a return to normality following the peak of the market in Spring 2014. The capital’s property market is still bustling with 21 potential buyers chasing each property for sale,’ he added. Continue reading →

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