Tuesday, 13 December 2016

Annual house price growth slowed in October, dropping from 7.0% in September to 6.9%.




The data from the Office of National Statistics revealed that on a monthly basis prices edged up just 0.1% to £217,000.
This followed an increase of 0.4% in September and a drop of 0.4% in August.
The East of England is the region which showed the highest annual growth, with prices increasing by 12.3%.
Growth in the South East was second highest at 9.1%, followed by London at 7.7%.
The biggest price rises were in commuter towns surrounding London, as buyers look outside of the capital for affordable property.
The local authority showing the largest annual growth in the year to October 2016 was Basildon, where prices increased by 19.9% to stand at £302,000.
This was followed by Slough with growth of 19.6% and Barking and Dagenham, where prices rose 18.2%.
The lowest annual growth was recorded in the City of London, where prices fell by 8.8% to stand at £713,000.
Howard Archer, chief economist at IHS Global Insight, said that with housing market activity coming off its recent lows and the economy currently resilient, house prices look likely to rise “modestly” in the near term.
“However, we suspect that house prices will come under increasing pressure as 2017 progresses and will likely be essentially flat over the year. Indeed, we would not rule out a marginal drop,” said Archer.
Richard Sexton, director of e.surv, said: “Today’s results show a slight monthly downturn in house prices, with the most acute changes in London, and in particular prime property, which can in part be attributed to the changes in stamp duty rates.
“Annually, however, prices have continued to rise, with strong growth in areas such as the East of England and the South East, pricing many buyers out of the market completely.
“This situation is not desirable for those hoping to enter the market. The hugely regional picture also highlights the challenges the government is facing as it prepares its Housing Policy White Paper. However, with careful and progressive changes, the housing market could once again be accessible to all those hoping to get on the ladder.”

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