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House prices show annual rise but sales volumes slide – ONS

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  • 20/03/2018
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House prices show annual rise but sales volumes slide – ONS
House prices increased 4.9% year-on-year in January 2018 , against 5% seen in 2017, while sales volumes showed large drops, according to the Office for National Statistics (ONS) data and the Land Registry.

 

However, the house price index showed that on a monthly view, prices fell by an average 0.3% since December 2017.

The average property value in the UK stood at £225,621 as of January 2018.

The East Midlands and Scotland saw the greatest change with both growing 7.3% since January 2017, followed by the South West at 6.9%.

The slowest region was the North East at 0.7%, followed by London at 2.1%.

John Eastgate, sales and marketing director at Onesavings Bank, commented: “The uptick in property price growth has softened in recent months, especially in London where the slowdown has had a disproportionate impact on the national picture.

“However, the mortgage market remains steady and growth is expected to continue along a modest path this year.

“With the end of the Term Funding Scheme, a possible May interest rate increase and absence of wage inflation, affordability will continue to be a challenge for potential home buyers.”

 

Volumes

Sales volumes showed stark falls, with the latest data available revealing that number of sales in the UK fell 11.3% compared to November 2016.

In England, sales volumes fell 13% from 74,097 to 64,454 in November 2017.

Volumes in Scotland fell 1.9% from 8,734 to 8,572, Wales dropped by 5.2% from 4,084 to 3,871, and Northern Ireland slid 8.8% from 6,033 to 5,501.

Richard Snook, senior economist at PwC, said: “Today’s data give the first insight from the ONS and Land Registry figures for 2018 and show a soft start to the year.

“While annual growth is positive, prices actually dropped by more than £600 on average from the previous month taking the price of a typical UK house to £225,621.”

Snook added: “Sales volumes in the UK to November 2017 fell 11% compared to the year before, suggesting that prices could weaken in coming months. We are expecting UK wide house price inflation of around 4% in 2018.”

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