UK House Prices Increase
Office for National Statistics figures say that house prices increased by 7.7% in the year to November 2015, the fourth consecutive month of growth, and are now at triple the pace of salaries growth.
The average annual wage growth is currently around 2.4% whereas house prices have increased from 7% in November 2015 to 7% which is today’s rate.
House prices took a nosedive after the beginning of the year but as the year progressed activity became extremely busy around autumn and led to a fourth consecutive month of growth, despite this habitually being a quieter time in the housing market. According to new figures from the ONS, the average house price in the UK currently stands at £288,000. Once again, house prices were determined by rises in the East, South East and in London. A deficiency of supply and intensifying demand were the causes of house price surge in November, the ONS said.
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’, the 20-39 age group that our research shows is increasingly struggling to get on the housing ladder.”
The annual rate of change of house prices: UK, country and regions