UK Property Prices Still Rising

UK Property Prices Still Rising

UK property prices continued to rise after the buy to let rush to beat stamp duty increases, reaching an average of £209,000 in April 2016, up 8.2 per cent annually, according to the house price index from the Office of National Statistics.

On a monthly basis, prices are up £1,300, with property values in England up 9.1 per cent, reaching £225,000. Wales saw house prices nudge 1.7 per cent higher in the last 12 months to reach £139,000, whilst in Scotland, the average price increased by 3.3 per cent to £138,000. In Northern Ireland, the average price is £118,000.

However, this new official house price index replaces the previously separate ONS and Land Registry indexes, despite the fact that there is a disparity of £100,000 in the average house price measure between them. Last month typical values from the  ONS fell at £292,000, in comparison to the Land Registry’s £190,000.

The Land Registry monthly report used actual prices paid data, however neglected to consider new-build homes and properties held long-term. The ONS figures used transaction data taken from the Council of Mortgage Lenders’ Regulated Mortgage Survey. The former covered just England and Wales, whilst the latter included all of the UK.

The new house price index will use prices paid data from the Land Registry which will examine all sales. Additional property attribute information, including floor space, will also be considered, gleaned from the Council Tax Valuation list maintained by the Valuation Office Agency.

Senior economist, PwC, Richard Snook said: ‘Today marks the launch of the revised ONS house price index, which makes use of a new methodology to estimate the value of our homes. The ONS now estimates that the average UK house is much cheaper. The estimated price is now £209,000, compared to £292,000 under the old methodology.’

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UK Property Prices Still Rising

Property & Development Magazine

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