January 20, 2016
UK house prices accelerate by 7.7% in November
House prices across the UK accelerated in the year to November, rising 7.7%, according to the Office for National Statistics (ONS), with the average cost of a UK home having risen to a record £288,000. The East of England continued to see the sharpest increase, at 10.2%, with London and the South East seeing rises of 9.8%. Prices in the North East of England saw the slowest growth, at just 0.4%, the ONS said. Overall, England saw growth of 8.3% to an average of £302,000; in Northern Ireland the rate was 4.6%; Wales saw values up 1.3% and values in Scotland rose just 0.4%. Rob Weaver, director of investments at crowdfunding platform Property Partner, said: “House prices in Wales and Scotland - the last bastions of heavy industry – are dragging behind, completely out of kilter with other parts of the UK which are steaming ahead.” Howard Archer, economist at IHS Global Insight, said he expects house prices to rise by around 6% in 2016, while Brian Murphy, head of lending at the Mortgage Advice Bureau, voiced a belief that “house price growth isn’t likely to slow any time soon”. He warned that this “creates clear affordability concerns for first-time buyers.” Richard Snook, senior economist at PwC, said: "Strong momentum in the UK property market means prices continue to outstrip growth in average earnings. That makes home ownership more difficult for 'generation rent'."