The UK’s house prices have now risen 15 quarters in a row and are now up some 36.6% since the height of the financial crisis in the spring of 2009, writes property developer Richard Carr.
During the second quarter of 2016 house prices in the United Kingdom increased by 1.8% on the previous three months and a massive 8.5% based on the same period a year earlier.
As a result, the typical house price of a standardised UK property rose to a record figure of £215,582 from £211,868.
Despite the country wide increase, there’s still huge disparity throughout the regions. For example, London house prices have increased more than double the UK average and nearly four times greater than in Northern Ireland.
Also, despite the 8.5% annual increase, it was actually the lowest rise recorded since the third quarter of last year.
Unsurprisingly, London and the South East remain the most expensive areas to purchase housing with the average price in the capital currently pushing close to £450,000. Whereas the lowest prices in Northern Ireland are £119,000, meaning the gap between the most expensive and cheapest regions is at a new record of just under £330,000.
Elsewhere in the country, no other region recorded double digit house price rises with most registering slowdowns in comparison to the previous quarter.
“The UK housing market showed signs of cooling in the spring, with the annual rate of inflation slowing to 8.5%. Although average prices moved 1.8% higher than the first quarter, only six of the 12 UK regions saw house prices rise in the three months to June, with prices falling in five regions and stagnating in London,” said Chris Williamson, chief economist at Markit.
“This is the first time that prices have failed to rise in London since late 2012. The second quarter stagnation still left house prices in the capital some 14.6% higher than a year ago, the highest annual rate of increase of all UK regions, but that’s down from 21.2% in the first three months of the year,’ he pointed out.”
Richard Carr expects that this stagnation may continue until the full terms of Brexit are confirmed and understood. Once they have been digested he expects the market to grow again.