ONS figures indicate slowing growth in residential property market

on Mar 24, 2015

The latest figures from the Office of National Statistics (ONS) house price index have revealed that in the year to January 2015, the growth rate of average house prices across the UK slowed to 8.4 percent, down from 9.8 percent in the year to December 2014.

The figures showed the annual rate of house price inflation was 8.5 percent in England, 4.9 percent in Wales, 7.8 percent in Scotland and 7.8 percent in Northern Ireland. The contrast in the figures illustrate a greater degree of property inflation in England, which is typical when compared with the rest of the UK. Overall the figures are indicative of a general slowing of house price growth
London, yet again, is shown to be in a league of its own with house price growth of 13 percent with the East of England experiencing a 9.9 percent growth rate while the South East saw growth of 7.6 percent.
To address the distortive effects that London and the South of England have upon the overall average estimates of the UK residential property market, the ONS calculated the national averages excluding these areas, resulting in an estimated 6.5 percent increase in UK house prices over the year to January.
First time buyers paid 9.7 percent more for their homes in January 2015 than 12 months earlier, however for existing owner’s the price of a second residential property increased by 7.8 percent. This is a worrying statistic that lends weight to the view of many analysts that the UK property market is one that favours the buy to let landlord more than it does those looking to purchase their first home.
The index is calculated using mortgage financed transactions that are collected via the Regulated Mortgage Survey by the Council of Mortgage Lenders, covering the vast majority of mortgage lenders in the UK.

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