When it comes to calculating house prices or the cost of living in the United Kingdom, the impact of London can often be so overpowering that any real analysis of the numbers is worthless. However, when the London figures are removed, there is a better chance to examine these figures for the rest of the country in greater detail. Official figures showed that with and without London’s dominating influence, the annual house price growth rose at a rate faster than the cost of living in November 2013.
This led the Office for National Statistics, the ONS, to state that property prices have increased strongly. Compared to the same period in 2012 and for the price of houses across the United Kingdom, prices has increased by 5.4% while the rise of prices for the same period in London had increased by 11.6%. This is an interesting statistics but when you remove London and the south east of England, and review the price rises in line with inflation, you may start to see signs of the housing market recovery taking shape. Inflation rose by 2.1% but house prices around the rest of the United Kingdom rose by 3.1%. In a market that is always desperate for positive news, this is definitely something that will have come as a relief to many involved with the UK housing market.
The UK is on the up
Across the country there has been notable growth with the individual nations of the UK all experiencing accelerated price growth. The prices in England rose by 5.6%, the prices in Wales rose by 5.4%, the prices in Northern Ireland increased by 3.3% and the prices in Scotland rose by 2.5%. While the 11.6% increase in London represents a sizable proportion of any English increase, there are other parts of the country which have shown positive signs.
The West Midlands has seen a price rise of 4.4%, the North East has seen a price rise of 4.2% and the East has seen prices rise by 4.1%. Other areas of England who have experienced a rise in prices according to ONS figures for November 2013 include Yorkshire and the Humber, the South West, East Midlands and the North West.
The rise in house prices from the year before in Novembers continues a trend that was noted in October as well. With continued buoyancy in a number of different regions, there is cause for optimism. While some experts believe that the drive for this change comes from potential buyers being priced out of the London and South East market moving elsewhere to find value, there is no doubt that there are positive signs to cling on to with respect to the UK housing market.
The house price index compiled and released by the ONS is based on mortgages that have been completed.