House prices continue to remain relatively stable across most of the UK, although prices in London are increasing and prices in Northern Ireland are falling
The year-on-year increase reflected growth of 1.8 per cent in England and 2.8 per cent in Wales, which were offset by a decline of 2.2 per cent in Scotland and 11.7 per cent in Northern Ireland
Annual house price increases in England were driven by a 3.4 per cent rise in London and a 3.1 per cent increase in Yorkshire and The Humber
Excluding London and the South East, UK house prices increased by 0.8 per cent in the 12 months to October 2012
On a seasonally adjusted basis, UK house prices increased by 0.2 per cent between September and October
In October 2012, prices paid by first-time buyers were 1.8 per cent higher on average than in October 2011. For owner-occupiers (existing owners) prices increased by 1.3 per cent for the same period
Peter Williams, Executive Director of the Intermediary Mortgage Lenders Association (IMLA), comments:
“House prices continue to remain reasonably stable across most of the UK although there are some regional discrepancies, with London and the South East seeing the largest increase. It is clear that the North/South divide is still a reality when it comes to the property market.
Although the 0.2 per cent increase in UK house prices from September to October is not enough to significantly affect consumer confidence, it shows things are moving in the right direction. The Autumn Statement and subsequent analysis flagged up the slow pace of recovery; however, the market is stabilising and there are reasons to be more optimistic about growth in 2013/14.
As funding and competition increases, we can expect to see more appetite for innovative products in the housing and mortgage market, and IMLA members will be working to respond to consumers’ changing needs.”
Paul Hunt, managing director of Phoebus Software said:
“Moderate house price growth is being supported by a mortgage market which continues to be restrained but is fundamentally robust. The dreary economic picture and difficult funding conditions are making lenders cautious, but despite a shortage of mortgage finance for lower income borrowers, there has been a vast improvement in the availability of good mortgage deals for lower LTV borrowers. Competition among lenders at 60% LTV is likely to creep up to 65% and 70% next year."
