House prices are still edging up in most areas, albeit that the overall annualised increase over the last 12 months is lower than the equivalent rate of increase for March 2018 and indeed the lowest since March 2017. The average UK house price in April 2018 was £227,000. Overall, this is still £9,000 higher than the average for April 2017, but a look at the monthly average prices shows that things have been pretty stagnant since August 2017.
In the past year, average house prices across the UK have risen by 3.9%. The main contribution to the increase in UK house prices in value terms came from England, where house prices increased by 5.0% over the year to December 2017, with the average price in England now £244,000. Wales saw house prices increase by 5.4% over the latest 12 months to stand at £154,000. In Scotland, the average price increased by 7.7% over the year to stand at £149,000. The average price in Northern Ireland is currently £130,000, as the earlier strong growth has flattened out.
In the Regions
On a regional basis, London continues to be the region with the highest average house price at £484,500, but London still shows the lowest rate of growth in England, with an increase of 1.0% in the past year. London is followed by the South East and the East of England, which stand at £324,500 (+3.5% for the year) and £286,500 (+2.5% for the year) respectively. The lowest average mainland price continues to be in the North East, at £130,500 (+4.5% for the year).
The South West is the region which showed the highest annual growth, with prices increasing by 6.1% in the year to April 2018, but this was closely followed by Scotland and the West Midlands, at 5.6% and 5.9% respectively.
The graphic below does show that prices were fairly flat for most regions in the month of April. There were a few areas that showed some reduction within the month – the green shaded areas below. Sales volumes were down in the year to February 2018 in all regions (-15.4% in England).
In terms of particular property types, semi-detached houses saw the largest percentage increase (5.3%), whilst flats and apartments showed the smallest rate of increase (1.0%).
If you would like to discuss this with us in more detail or if you would like to speak with a member of our Construction & Real Estate team, please contact Hannah Farmborough or call on 0207 429 4147 to be put in contact with your local representative.
This article featured in issue 9 of our construction and real estate newsletter series. Read the full newsletter here: Real Estate Matters Issue 9