PROPERTY UK: Data released today points to an instantaneous uplift in property prices as a results of the election result last month, although the longer-term forecast for the remainder of this year is more conservative.
Figures from one among the UK’s largest mortgage lenders Nationwide suggest that there was a month on month increase of 0.5 per cent, equating to a rise of just over £600 on the typical UK home. On an annual basis, prices have increased by 1.9 per cent in January, meaning that the typical property price is now £215,897, increased from £211,756 during an equivalent period last year.
Of course, the figures are based only on the mortgages provided by the Nationwide, therefore there'll be a small degree of variance in comparison to other data.
However, as a snapshot of where we are a couple of weeks into the New Year , it’s a really useful barometer.
Nationwide’s Chief Economist Robert Gardener comments:
January saw an extra modest pick-up in annual UK house price growth. This follows twelve successive months during which annual price growth had been below one per cent.
Indicators of UK economic activity were fairly volatile for much of 2019, but the underlying pace of growth slowed through the year as a results of weaker global growth and an intensification of Brexit uncertainty.
Recent data continues to color a mixed picture. economic process seemed to grind to a halt as 2019 drew to an in depth , though business surveys point to a pickup at the beginning of the New Year . Labour market data was surprisingly upbeat within the three months to November, with the economy adding
over 200,000 jobs, the most important gain since the top of 2018.”
Robert adds, “Looking ahead, economic developments will remain the key driver of housing market trends and house prices. Much will still depend upon how quickly uncertainty about the UK’s future trading relationships lifts, also because the outlook for global growth.
Overall, we expect the economy to still expand at a modest pace in 2020, with house prices remaining broadly flat over subsequent 12 months.
Mike Scott, Chief Property Analyst at realtor Yopa, observes that the Nationwide data indicates the most important annual rate of growth since November 2018 and suggests that this “Lends further weight to reports of a recovery in housing market confidence following the decisive election result.”
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