2012 SEES STRONGEST ANNUAL GROWTH FOR THREE YEARS

  October-12 November-12 December-12
Average house price £204,842 £204,289 £202,824
% monthly change 0.7% -0.3% -0.7%
% annual change 1.9% 2.8% 3.4%

 

Analysis of data from the leading UK house price indices reveals that the UK housing market saw monthly price growth slow in the fourth quarter. However, strong growth in the opening six months meant prices still ended the year up 3.4% The average price of a home is now £202,824, an increase of £6,634 since December 2011.

 

 

 

 

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Acadametrics LSL

£226,081

£226,299

£226,577

£227,038

£227,026

ONS

£234,000

£233,000

£231,000

£232,000

£232,000

 Nationwide

£164,729

£163,964

£164,153

£163,853

£162,262

 Halifax

£160,142

£159,467

£159,313

£161,795

£163,845

 Rightmove

£236,260

£234,858

£243,168

£236,761

£228,989

Average

£204,242

£203,518

£204,842

£204,289

£202,824

 

 

Graph 2, below, reveals the annualised rate of growth for each month’s data and is less volatile than the individual indices themselves. Annualised rate of growth is the annual change in value that would be registered if the monthly rate of change were maintained for a full year. House Price Watch also regularises this data over three and six month periods, providing a less volatile representation of market trends than individual monthly snapshots.

 

The annualised average rate of growth for December was -8.6% while the three, six and 12 month annualised rates of growth are -1.4%, -3.4% and 3.4% respectively.

 

 

 

Stuart Law, Chief Executive of Assetz, said:

“In spite of some downbeat forecasts, 2012 saw the strongest calendar price growth for three years, comfortably achieving our predicted 3%. Following a healthy first six months, there was an inevitable price correction in the second half.

“The UK housing market in 2012 was buoyed by an influx of buy to let investors from home and abroad which has increased competition for the best properties in areas where there is strong employment prospects, transport connections and amenities. For this reason, the market remains two tiered with London and the commuter heartlands of the South East and regional cities such as Manchester, Leeds and Liverpool seeing stronger prices rises than elsewhere in the UK.

“With the base rate set to enter a fifth year at its historic low of 0.5% we could see many more new landlords diverting capital from low interest savings accounts to high yield property investments. This coupled with the greater availability of mortgage finance as part of the Funding for Lending Scheme (FLS) will support growth.

 

“We are confident of price growth of as much as 5% this year which would leave prices just shy of the 2007 peak in nominal terms and their highest since February 2008. The property market is well advanced on its slow road to recovery.”

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