House price growth ‘slowed in 2017’

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House price growth has seen a modest slowdown in 2017, with London the weakest performing region, the Nationwide building society has said.

According to the latest House Price Index, average prices rose by 2.6% in the last 12 months, compared to 4.5% in 2016 and in 2015.

In London, average house prices actually fell, although by a modest 0.5%, the lender said.

London was the worst performing area for the first time since 2004.

“Low mortgage rates and healthy employment growth continued to support demand in 2017, while the supply constraints, has provided support for the prices of the houses,” said National chief economist Robert Gardner.

“However, this was offset by growing pressure on household incomes, which has exerted an increasing drag on consumer confidence towards the end of the year.”

Looking ahead to 2018, at the National level, he said it is expected that the prices of the houses for the next year to grow by about 1%.

“Housing market activity is expected to slow only modestly, from the time that the unemployment and mortgage interest rates should remain low by historic standards,” said Mr Gardner.

“In the same way, the modest pace of construction activity evident in the last few years, and the lack of properties on the market, are likely to provide a continuous support for house prices.”

Outlook to 2018

Housing analysts and commentators are expecting a similar picture for house prices in 2018. If nothing else, they predict slower property price growth due to the reduction of people’s incomes.

That would be welcomed by potential first-time buyers, but not investors.

Many suggest that the image will be very different depending on the area of the country.

The Royal Institution of Chartered Surveyors said that prices could fall in London and the South-East of England, while on the rise faster in Northern Ireland, Scotland, Wales and the North West of England.

It is not only the geography that the house analysts believe that it will be important in 2018, but also the type of property.

Property portal Rightmove, which tracks asking prices, you would expect homes with two bedrooms or less, a price increase by 3%, compared with an increase of 2% in the three / four bedroom house.
Properties forecast to 2018
Your largest financial decision – in graphics

The regional split

At the National level, said the regional house price growth rates had converged in the course of the past year. The fastest-growing region was the West Midlands, where average prices increased 5.2% year-on-year.

However, significant disparities remain in the levels of price and convenience. The nationwide said house prices in London were approximately 55% more than it was in 2007, while in the North of England, as well as the Yorkshire and Humberside regions, prices were lower than those of the 2007 peak.

Samuel Tombs, chief economist at Pantheon Macroeconomics, said that mortgage rates could increase by the end of February.

A lack of consumer confidence may affect the potential demand for motors during the year, he added.

Increase the number of bedrooms

Adjust the amount of the deposit

The regular monthly payment amount

No affordable areas

You have a large enough deposit and your monthly payments are high enough.
The prices are based on the local market. If there are 100 properties of the right size in an area and in price order with the cheapest first, the “low-end” of the market will be the 25th property, “mid-price” is 50 °, and “high-end” will be 75.

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