House Price Update – June 2017
For most of the UK, house prices have been rising. Only three areas in the UK have experienced a fall in prices; the South East, West Midlands and Greater London. However, sales are continuing strong. This has been shown by the number of sales that were agreed this time of year, which have been the second highest for ten years. However, this is the first-time house prices have fallen in June since 2009 at the peak of the credit crunch.
Areas that have experienced the largest increases have been the Northern regions, with an 11% increase in sales, whereas the south has only stumbled to a 3% increase.
Over the past 5 years, house prices across the region have risen by 24% to £310,000, whereas before, in June 2012 the average was around £250,000.
Market Speed is different depending on geography and sector
The significant differences between local markets are hidden by the national average figures and have made people in other areas react differently.
The fastest growing sector is the first-time buyer sector, with two or fewer bedrooms, which has probably been assisted by Government funded help-to-buy schemes. Newly listed prices in this area seem to have surged by 3.5% month-on-month and 5% year-on-year.
The number of sales agreed compared to a year ago has increased more in Northern regions compared to those in the South. All regions are experiencing a 7% increase nationally in stamp duty, but the 11% increase for the North far outweighs the South’s increase of 3%. Reasons for this can be seen in the price falls for London (-2.4%) and South East (-0.9%) regions that have been hit the hardest in the monthly falls for property coming into the market. The London and South-East figures account for a large amount of the total market and have lowered the national figure, which would have been positive if it weren’t for these two lower performing regions.