Looking at average house prices across the UK
According to the Cities House Price Index, November 2019, the average house price in the UK is £235,298.
There was a 0.4% rise in property prices in comparison to the previous month and a 2.2% rise on the last year.
The UK House Price Index (HPI) uses house sales data from HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland and is calculated by the Office for National Statistics.
House price growth in the last decade
In the last ten years, property prices have increased by 54% when you look across 20 major cities in the UK. An additional 3% rise is forecast over the next 12 months.
In these major cities, the typical house has seen £90,000 added to its value since the beginning of 2010. That’s a rise of 4.4% a year.
London saw the biggest property price rises with an average of £204,400 or 74% - but this growth was predominantly before 2016. By contrast, Aberdeen and Belfast finished the decade at much the same level as they started it.
“As we start the next decade in housing, a top priority for the new Government is to ensure we look to remove the barriers to households moving home, with housing policy catering to the different market conditions across the country, while increasing housing choice across all tenures,” said Richard Donnell, research and insight director at Zoopla.
Regional gains and losses across the country
In the last 12 months, the average cost of a home across 20 major UK cities has risen by 3.4%. However, this encompassed considerable regional variations.
Edinburgh saw robust gains of 5.4%, next was Manchester with 4.7% and then Leicester at 4.5%.
However, Aberdeen didn’t fare so with falls of 0.7% in the past year. Oxford was down by 0.4%, and Southampton saw a rise of only 1%.
What’s the outlook for property prices in 2020?
With some of the political uncertainty removed, there are predictions of an increase in house sales as the market comes back to life. As a result, Zoopla expects average house price growth of 3% in the major cities in 2020.
However, cities in affordable regions of the country could see growth of 4%. But house prices in London are forecast to rise by only 2%.
Affordable cities, including Liverpool, Belfast and Glasgow, that have been showing gains twice the level of the average over the past ten years are forecast to see stronger rises. This means the north-south divide when it comes to property prices remains with cities in the south and the capital predicted to experience lower growth than in the previous decade.
A strong start to 2020
Following the general election, estate agents reported a boost in the second half of December. Sales agreed in the capital are up 19% compared to a year ago.
And in the latest Rightmove house price report, which tracked average asking prices in the capital from mid-December, the largest monthly rise ever recorded in January was seen. The report shows the average price is now £612,500, a gain of 2.1%.
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