Time on housing market jumps
As 2017 begins, overall price growth continues to decline. The market in London continues to fall which is negatively affecting the national average.
The decline in registered average house price this month has not been observed in all regions however.
The East Midlands and the North West have seen the strongest rises, both at 0.3%, although this increase is counterbalanced by the falls which occurred in the East of England, at -0.6% and Scotland at (-1.1%).
Although during this time of year a seasonal lull may be predicted, the year-on-year trend of rapid decline paints a wider portrait. The annualised rate of home price growth in January 2016 reached 8.2%, whereas the current rate is just 3.1%.
On the market, all English regions as well as Scotland and Wales, saw an increase in new instructions during December 2016. The most significant growth was observed in Scotland (23%) and the East of England (18%).
The East Midlands however, saw the lowest supply figures at 5%, closely followed by the West Midlands and the North East at 6%. For vendors, who typically choose to defer the decision to sell until the festive period has ended, this is a rare event.
This ‘rush to exit’ may have been caused by numerous factors, including overvaluation, rising interest rate fears, falling prices as well as the buy-to-let taxation changes.
Within the UK, the East of England performed the best during 2016. The prices in this region have continuously risen over the past five years, although it appears this period of growth may finally be coming to a close.
The prices of homes have become disproportionate with earnings, growing over the last 12 months by a further 10.2%. Within the East of England, prices have increased by 44% over the last five years alone. However, the rapid rate at which supply is growing indicates that a slowdown may occur during 2017.
For England and Wales in general, the mix-adjusted average asking price is currently 3.1% higher than the level in January 2016, and it is expected that this will slope into a downwards trend over the 2017.