Residential property increased by 8.2% across the UK to a national average of £209,054 over the year to April 2016, new official figures show.
The data from the new UK House Price Index, provided by the Land Registry, Registers of Scotland, Land & Property Services Northern Ireland and the Valuation Office Agency, reveal that monthly house prices have risen by 0.6% since March 2016.
House prices in England rose by 9.1% year-on-year taking the average property value to £224,731, following a monthly price rise of 0.7% since March 2016.
Data for Wales shows an annual price rise of 1.7% which takes the average property value to £139,385. Monthly house prices fell by 1.9% since March 2016.
London saw an annual price increase of 14.5% which takes the average property value to £470,025. Monthly house prices rose by 0.6% since March 2016.
London experienced the greatest increase in its average property value over the last 12 months with a movement of 14.5%, helping to keep its “property crown is intact – for now”, according to Andrew Bridges, managing director of Stirling Ackroyd.
He commented: “Unparalleled growth in house prices and unwavering demand mean a home in the capital now demands more than double the UK average. High prices aren’t putting off buyers, with the capital’s diverse variety of homes proving hard to resist. But this could be the calm before the storm.”
A potential Brexit is producing uncertainty in the market – and Bridges points out that the London property market is the most vulnerable to this new anxiety.
He added: “The top-end of the capital’s housing market has been stuck in a slowdown for a while now, with a 2.4% annualised fall in the last quarter of 2015. And this is worsening as buyers and sellers wait to see the referendum result – at least for the top end of London’s luxury market.
“But this is a temporary drop – and London’s ability to bounce back is in no doubt. Buyers may be flirting with the idea of buying in the cheaper and newer areas around the capital. But London’s overall draw, for both domestic and international buyers, is undimmed. And the challenge of political developments will be unable to thwart the capital’s global property reign.”
Despite London’s strength, the North West experienced the greatest monthly growth in house prices with an increase of 2.3%.
“The North West did indeed experience the largest monthly change of 2.3%, which suggests investors are now moving away from the capital in search of the healthy yields and security the Northern property market is certain to provide them with,” said Stuart Law, CEO at Assetz for Investors.
The North East saw the lowest annual price growth with an increase of 0.1%, while the South West saw the most significant monthly price fall with a movement of -2.8%.
The data also reveals that the volume of UK home sales continued to grow in the three months to April 2016 (Feb-Apr): rising by 8.3% relative to the preceding three months (Nov-Jan), although sales fell by 45.2% in April 2016 compared with March 2016.
“In transaction terms things are far less rosy, especially in the higher price brackets where more sales are discretionary and many sellers are holding off putting their properties on the market until after the Brexit uncertainty is past,” said Jonathan Hopper, managing director of buying agents Garrington Property Finders.