The Housing Price Index for April has recently been published.
Replacing the separately published house price indices from HM Land Registry and Office for National Statistics, the UK Housing Price Index provides a detailed summary of the recent house price statistics.
Introduced in 2016, the UK HPI comprises of all residential properties bought for market value within the UK. However, there may be a delay before transactions sync into the index as sales will only show up in the HPI after they have been registered. It is, therefore, important to bear this in mind when looking at the most recent periods of price changes – these may be amended.
The revision period, according to the ONS, will from today (13/06/17) be extended to a duration of 12 months.
All UK Dwellings
In the UK, there has been a 5.6% growth in average house prices during the year to April 2017 – this is an increase from 4.5% in the year to March 2017. In regard to annual growth rate, these figures indicate that the decline in growth has been ongoing since mid-2016.
During April 2017, the average UK house price was £220,000. Compared to the corresponding month last year, this is £12,000 higher and is also £3,000 more than March 2017.
UK Country Comparison
The rise in UK house prices, on the whole, was largely driven by growth in English house prices. During the year to April 2017, housing prices rose by 5.7%, with the current average standing at £237,000.
Over the same 12 month period, Wales saw house prices grow by 4.2%, rising to £148,000.
For Scotland, the annual increase in house prices was 6.8%, meaning that currently, prices are at £146,000.
Average house prices in Northern Ireland are now at £124,000, having risen by 4.3% during the first Quarter of 2017.
English Regional Comparison
At £483,000, the highest average house price continues to be found in London. This is then followed by the South East at £315,000 and the East of England which stands at £281,000. The North East is home to the lowest average house price, currently valued at £123,000.
Increasing by 8.1% in the year to April 2017, the East of England showed the highest yearly growth, just ahead of the South West at 6.8%. The North East and the North West had the lowest levels of growth over the 12 month period, with house prices increasing by 0.6% and 4.1% respectively.
UK Local Authority District Comparison
The Orkney Islands was the local authority with the highest annual growth during the year to April 2017. At present, prices stand at £152,000, having risen by 24.1%.
In some local authorities such as the Orkney Islands, small numbers of sales transactions can cause volatility in the series. Although this is acknowledged and efforts are made to account for this, local level price changes can be affected by the number of homes sold as well as the property type.
With prices dropping by 15.3% to £85,000, the lowest annual growth was recorded in Na h-Eileanan Siar.
The most expensive borough to live in during April 2017 was Kensington and Chelsea, with the average property priced at £1.4 million. The cheapest place to purchase from, in contrast, was Burnley, with average house prices documented at £76,000.
Commenting on the figures was Doug Crawford. The CEO of My Home Move stated:
“A strong performance in April’s house price data is testament to the robust nature of the property market, especially in light of the snap election. However, it is important not to be complacent. We urge the new Government to focus its attention on the pledges made in the White Paper and to appoint a new Housing Minister quickly, to ensure that the housing stock which is desperately needed is delivered and that the developers answer the calls of home movers, to build suitable homes that meet their needs.
“The good news is that there is a continued demand from first-time buyers and signs that the mortgage market is supporting those taking their first step onto the property ladder. My Home Move’s research found that 57% of aspiring buyers remain confident about their chances, but increases to prices at a time of poor wage growth still makes home ownership a significant challenge.”
