You are here: Home - Mortgages - Buy To Let - News -

UK house prices rose by 2.6% in 2017

0
Written by: Christina Hoghton
04/01/2018
UK house prices ended 2017 2.6% higher than they started the year, according to Nationwide, significantly down on the 4.5% recorded by the lender in 2016.

This put the average property price across the UK at £211,156.

Every region bar London saw prices rise over the year. The capital was the weakest performing region in 2017, with house prices down 0.5% year-on-year – the first time they have fallen for eight years.

The West Midlands topped the table for the first time ever, with average prices up 5.2% year-on-year.

East Anglia, last year’s top performing region, saw the biggest slowdown in annual house price growth, from 10.1% in 2016 to 2.3% in 2017.

Wales saw a slight pick-up in the rate of growth compared to last year, with a 3.3% annual increase in 2017. Scotland’s house price growth was similar to last year at 2.6%. Northern Ireland saw a slight increase in annual house price growth from 0.7% in 2016 to 2.0%.

Robert Gardner, Nationwide’s chief economist, said: “Low mortgage rates and healthy employment growth continued to support demand in 2017, while supply constraints provided support for house prices.

“However, this was offset by mounting pressure on household incomes, which exerted an increasing drag on consumer confidence as the year progressed.”

“The significant disparity in house prices across the UK has been a recurring theme in recent years. In this respect, 2017 saw the beginnings of a shift, as rates of house price growth in the south of England moderated towards those prevailing in the rest of the country.”

Jonathan Samuels, CEO of property lender, Octane Capital, added: “Not so long ago it would have been inconceivable for London to have been the only region not to have delivered positive returns in a calendar year.

“London, without doubt, has been a victim of its own success. Prices reached absurd highs and it is now paying for its irrational exuberance.”

Looking ahead

Nationwide said that the performance of the housing market this year will be determined in large part by developments in the wider economy. Brexit developments will remain important, though these remain hard to foresee.

The lender predicted modest house price growth in 2019 of 1% to 1.5%.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2325675-for-sale-sign-house
Two in five homeowners would welcome move to reduce house prices

A substantial 41% of homeowners said they would support action to bring down house prices by a ‘moderate amount’ in...

Close