UK House Prices Defy Brexit, New Figures from Halifax House Price Index

The latest figures from Halifax make for positive reading, UK House Prices Defy Brexit;

+5.0% Annual change

+4.2% Quarterly change

+1.1% Monthly change

£236,619 Average price

  • On a monthly basis, house prices rose by 1.1%, versus a fall of 1.3% March.
  • House prices in the three months to April were 5.0% higher than in the same three months a year earlier.
  • In the latest quarter (February to April) house prices were 4.2% higher than in the preceding three months (November to January).The average house price is now £236,619.
  • In April 2009 average house prices were £154,663 – the low point following the 2008 financial crash. Since then we have seen an increase of £81,956, which reflects a 4.3% average annual increase.

The sharp 5% rise in April’s annual change figure comes against the backdrop of a particularly low growth rate over the corresponding period in 2018, impacting year-on-year comparisons, furthermore, this also factors in a notably high growth figure recorded in February this year, driven by a higher volume of London sales and more expensive new build properties.

Russell Galley, Managing Director, Halifax, said: “The average UK house price nowstands at £236,619 following a 1.1% monthly rise in April, as demand and supply of housing remained subdued for another month. “The index has seen a weaker pace of growth over the last three years, which is consistent with the easing of transactions volumes and housing market activity reflected in RICS, Bank of England and HMRC figures. “Looking further back, this April also marks 10 years since the lowest point of the Halifax house price index following the financial crash in 2008. Over the past decade annual house price growth has seen the average price increase by £81,956, or an average rise of 4.3% each year.”

London House Prices continue to fall.

Where the majority of the UK House Prices Defy Brexit; London house prices continue to fall while values in the North and the Midlands are rising, significantly outperforming the South.

The most buoyant market was Wales asking prices grew 4 per cent.  Followed by 3 per cent in the West Midlands. 2.6 per cent in the North East and 2.1 per cent in the North West; according to the latest Rightmove asking price index.

Majority of the UK Defies Brexit

Rightmove analyst Miles Shipside said the majority of the UK had “defied Brexit”. Buyers are more concerned with their own housing needs than with the country’s political chaos.

“Activity breeds activity. A greater choice of fresh properties in the likes of Wales helps to spur buyers into action; especially if they have a property to sell.”

“This in turn adds another new listing that might then tempt another buyer, in a virtuous circle. And in much of the rest of the country, despite the ongoing political uncertainty; agents are reporting that the lure of the right property at the right price still attracts good interest,” Shipside explained.

UK asking prices have nudged up 0.1 per cent over the last year to £308,290 with the negative London picture holding back overall growth.

The average asking price of a home in Greater London has been slashed by £16,157 (or 2.5 per cent) to £621,589 over the last 12 months to May.  Asking prices also fell in the South East (by 1.1 per cent) and were sluggish in the East and South West with 0.9 per cent and 1 per cent growth respectively.  All but two London boroughs have new sellers asking less on average than a year ago. Only Barking & Dagenham and Bexley — the capital’s two cheapest boroughs — held their value year-on-year.

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