Growth Trend of House Prices in UK Shaky as EU Referendum Looms
House prices in London were showing signs in the first month of the year what could possibly be the tone for the housing market throughout 2016. According to the Office for National Statistics (ONS), the capital’s property market grew by an average of £484 a day in January. The annual house price for London grew by 10.8% to a record level of £551,000.
Strong demand has pushed house prices upward in London and the south-east, yet not all areas of the UK are showing continued strength. ONS reported that house prices in Wales, Scotland, and Northern Ireland have slowed down considerably.
Declining house prices dropped in Wales by 0.3%, while the growth seen in Scotland was a mere 0.1%. Northern Ireland house prices grew by only 0.8% and in north-east England the house price growth level recorded for January was 0.9%.
The average house price in the UK, assisted by the strong growth in London, amounted to £291,504. While previously noted that London’s annual house price grew by 10.8%, the south-east realized annual growth of 11.7%, and in the east of England there was an increase of 9.8%.
Continued strong growth for property in many areas of the UK and a boost for those stalling out would be expected in the spring and summer months. However, the upcoming EU referendum on 23 June causes expectations to be less clear in the housing market. Economists have warned that should Britain exit the EU, the health of the UK housing market could take a major hit.