The UK residential property sector has ushered in the New Year by registering a 4.3 per cent growth in the house prices. The Nationwide House Price Index for January 2017 revealed that the average price (seasonally adjusted) of a house in the UK had reached £205,240, registering 0.2 per cent month-on-month (from Dec 2016 to Jan 2017).
The continued rise in the prices of houses indicates the stability of the housing market in the UK. It is interesting to note that the house price growth rate considers the seasonal factors and the implications of Brexit and the subsequent impacts on the economy. Despite such huge challenges, the house prices have either grown or remained stable in the last six months, indicating the demand for quality housing.
Another observation from the Nationwide House Price Index is that the economy did not slow down during the second half of 2016, as predicted by many. Consequently, the houses prices are likely to grow by 2 per cent during 2017. Though Nationwide has been modest in its prediction taking into consideration several economic factors, we anticipate a higher demand for quality residential properties built at lower capital values, especially in London where prices are the highest.
The fundamentals of the UK property market are strong, and London has remained among the top destinations for investments in real estate. The scenario presents a favourable investment option for those interested in acquiring homes in London.
The economy has remained far stronger than expected in the wake of the Brexit vote. Recent data indicates that the economy didn’t slow in the second half of 2016 and the unemployment rate remained stable at an 11-year low in the three months to November - Nationwide