English house price growth outstrips UK

Mortgage Introducer

October 13, 2015

In England property inflation stood at 5.6% in the year to August 2015 compared to 0.8% in Wales, 2.9% in Northern Ireland and a 0.9% fall in Scotland.

UK house price growth stood at 5.2% in August, unchanged from July 2015.

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “The dip in lending activity during August is typical for the summer period, and overall the market is looking in far healthier shape than a year ago when house prices were rocketing and the mortgage market was still adjusting to new affordability rules.

“House prices have been rising on a far more stable trajectory in the last few months, with no recent signs of dips and troughs. Annual growth of between 5% and 6% looks far more sensible than the double digit growth seen this time last year, although it doesn’t reduce the need for government to put housebuilding firmly at the top of its agenda.”

In England annual house price increases were driven by the East (8.8%) and the South East (7.4%).

When excluding London and the South East UK house prices increased by 4.8%.

Adrian Gill, director of Reeds Rains and Your Move estate agents, added: London is firmly back in the driving seat of property price rises, following a slight pit stop, and is having a much greater influence on national measures of price growth on an annual basis.

“As in the rest of the country, it’s the more affordably priced London boroughs which are behind this renaissance, as the strengthening of sterling, rising stamp duty rates and moves against non-doms take their toll on the high-end market.”

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