Average UK House Prices Dragged Down by Decline in Capital

By: Submissions

Over recent years, house prices in the UK have fluctuated quite significantly. There has been some positive news of late, with house prices across the country increasing by 0.6 percent over the year. However, house prices declined in the South East and London, which resulted in the UK average house price falling.
 
According to figures, performance in London was the worst in a decade. However, despite the falling property prices, it is still the most expensive place to buy property in the UK. The South East and East of England are the second and third most expensive places to purchase residential property. Figures show that house prices in London have fallen at the fastest pace since 2009. 

Increases in Other Parts of the Country

 
Figures from the Office for National Statistics showed that many other parts of the country saw an increase in prices. This included an impressive 4 percent annual increase in the North West of the country and a 2.9 percent annual increase in the West Midlands. Many people may be looking forthe quickest way to sell a house while values are on the rise in areas such as these. However, in the capital, it is a different story. 
 
An official from the ONS said that while some parts of the UK had seen impressive growth over the course of the year, this has generally been outweighed by the decline seen in London and the South East. House prices across Wales increased by an average of 4.1 percent annually and in Northern Ireland, prices jumped by 5.5 percent. In Scotland, however, there was a drop of 0.2 percent.
 
Officials have stated that buyers are being very cautious about purchasing property at the moment because of challenging conditions and the uncertain future created by Brexit. Economic issues also appear to be having a negative effect on the property market. He also said that while there were pretty dramatic variations in terms of house price fluctuation among different regions, the decline in the South East and the capital meant that there was a knock-on effect on the overall picture.

Predictions for the Coming Year

 
Howard Archer, the chief economic advisor at EY ITEM Club, has already made a prediction for house prices in the coming year. He believes that house prices may increase by 1 percent over the course of this year. However, he did not rule out the possibility that prices could stagnate and the predictions could change dramatically based on what happens with the Brexit situation.
 
At present, the lowest average house prices in the UK can be found in the North East, where the average property price is £125,000. In this region, house prices are actually below the peak that was reached during the global financial crisis. Despite the decline over the year, London house prices stand at an average £460,000 at the moment, with house prices in the South East standing at £316,00 on average.

By Samantha Waites

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