ANALYSIS of data from the leading UK house price indices reveals that the UK housing market saw monthly price growth
ANALYSIS of data from the leading UK house price indices reveals that the UK housing market saw monthly price growth slow in the fourth quarter of 2012. However, strong growth in the opening six months meant prices still ended the year up 3.4 per cent. The average price of a home is now £202,824, an increase of £6,634 since December 2011.
Assetz House Price Watch is an analysis of house price data from the Office for National Statistics, LSL Acadametrics, Halifax, Nationwide and Rightmove, giving a comprehensive overview of the UK property market and a more accurate and less volatile picture of house price trends.
The annualised average rate of growth for December was —8.6 per cent while the three, six and 12-month annualised rates of growth are —1.4 per cent, —3.4 per cent and 3.4 per cent respectively.
Stuart Law, chief executive of Assetz, said: “In spite of some downbeat forecasts, 2012 saw the strongest calendar price growth for three years, comfortably achieving our predicted three per cent. Following a healthy first six months, there was an inevitable price correction in the second half.
“The UK housing market in 2012 was buoyed by an influx of buy-to-let investors from home and abroad which has increased competition for the best properties in areas where there is strong employment prospects, transport connections and amenities. For this reason, the market remains two-tiered with London and the commuter heartlands of the South East and regional cities such as Manchester, Leeds and Liverpool seeing stronger prices rises than elsewhere in the UK.
“With the base rate set to enter a fifth year at its historic low of 0.5 per cent we could see many more new landlords diverting capital from low interest savings accounts to high yield property investments. This coupled with the greater availability of mortgage finance as part of the Funding for Lending Scheme (FLS) will support growth.
“We are confident of price growth of as much as five per cent this year which would leave prices just shy of the 2007 peak in nominal terms and their highest since February 2008. The property market is well advanced on its slow road to recovery.”