House prices gap between the capital and UK regions set to narrow this year
6 January 2016, Blog
A new year brings new data on housing in the capital. The Nationwide Building Society has published its latest house price index for December 2015 and their report predicts that UK prices will rise by 3-6 per cent this year, but it questions whether the increasingly divergent regional house price performance will continue in 2016.
London house prices have been racing away from the national average in recent years. The region has performed the strongest for the fifth consecutive year and average annual house prices are up 12.2 per cent for the fourth quarter of 2015 on the previous year. This is compared to 4.5 per cent nationally.
Nationwide points to the correlation between growth in employment and house prices. Though gains in employment are high in the capital, affordability metrics are stretched. Nationwide have concluded that whether or not the increasing gap between London and other regions remains quite so staggering is an “open question” and “another year of above-average price gain appears unlikely”.
London housing will no doubt remain a salient topic in the coming months that lead up to the mayoral election.