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

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

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.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

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...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

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