Average price for property in the UK has reached £ 197000

Prices for residential property in the United Kingdom grew by 0.8% in the month and in December 2015, up to an average of £196999 . The annual growing rate was 4.5 percent . Nationwide has published its traditional index , showing that after a very weak first six months of the year, property prices in the UK catch up in the second half of the year.

However, 2015 was significantly weaker than 2014 in price growth. The Nationwide report also indicates that London has shown the best result over the past five years annual standard prices by 12% .

Average prices in London now 50% above their pre-crisis peaks of 2007, while across the UK average prices approximately 7% higher. The weakest price growth showed Yorkshire and Humberside, only 0.4% growth over the last 4 quarters.

After a strong failure, began to recover, the housing market in Northern Ireland, showing a 6.5% growth over the last year. However, the property market in Northern Ireland, where average prices are now 44% below the levels of 2008, still far from their pre-crisis peaks.

The only region where housing prices fell in 2015, became Scotland, showing the average fall in prices of 1.8% per year. Meanwhile, it’s a small price drop on the background of falling real estate prices in oil-producing countries. For example, in Saudi Arabia, housing prices fell by 40% , in Russia – more than two times.

The report indicates that England is still divided into two parts – North and South. And the gap in prices between North and South continues to increase. Real estate prices over the past year in the South of England and London grew by 8.9%, at the same time in the North-West and the North, prices increased by 1.6%, which further widened the gap between North and South of the country. Thus in absolute terms the difference in prices between the North and the South of England reached £159000 which is £23000 more than a year ago.

In 2016, according to forecasts, it is expected a slight acceleration of growth in property prices, despite the high probability of a rate hike by the Bank of England in the second half of 2016. The employment rate in the UK is improving. In London in 2015 the level of employment has risen by 14%. And the main factor that will inhibit growth of the UK property market, there is a shortage of properties for sale that will put pressure on the market, contributing to higher prices. Already the December statistics showed a strong correlation of growth of prices depending on the level of employment in the country.

Thus, 2016 will take place under the sign of the rising confidence of buyers in the backdrop of improving economic indicators in the country with the strengthening of the role of the regions compared with London , where people will choose their more affordable housing.

® Alice Morgan. G. 24.12.2015

 Price indices for UK property

Index Halifax

Index Hometrac

The Index Of The Land Registry

Index LSL Property Services Acadametrics

Index Nationwide

Index Office for National Statistics

Index Rightmove

Index index