UK house prices see steepest monthly and annual increase on record

UK house prices see steepest monthly and annual increase on record

According to the latest report from Haart, UK house prices have risen 13.4% annually and 3.7% on the month to pass the £230,000 mark for the first time - reaching £231,857.

There has been a 7.5% annual increase in the number of new buyers. Meanwhile, the supply of properties has declined by 3.1% in just one month, resulting in fierce competition.

While viewings fell 4.5% on the month in November, sales increased 0.5% over the same time period. This indicates that buyers entering the market are becoming increasingly serious and are seeing fewer properties before placing an offer.

First-time buyer house prices have risen 1.1% on the month and 0.2% annually to reach £166,581.

National

November 2015

% change since October 2015

% change since November 2014

Ave UK house prices £

(SSTC)

231,857

3.7

13.4

Ave FTB house prices £   

(SSTC)

166,518

1.1

0.2

London house prices £

(SSTC)

525,780

3.4

12.3

House sales (exchange)

60,386

0.5

-5.4

Ratio of new buyer demand to property supply

11.5:1

-4.1

8.8


The number of first-time buyers has fallen 7% in the last month as a result of competition with buy-to-let investors. The number of first-time buyers as a percentage of all mortgages written has fallen to 40.4% from 42.5% a month ago.

However, on a positive note for first-time buyers, the average deposit for a starter home has declined 2% in the last month and 2.3% in the last year.

Paul Smith, CEO of haart, had this to say: “UK house prices rose 13.4% annually and 3.7% on the month to break records again in November. This is the steepest monthly and annual increase on record and follows a surge in registrations from buy-to-let investors since the Autumn Statement in anticipation of the 3% stamp duty surcharge which is effective from the 1st of April 2016. This could mean the stamp duty payable on a property worth £275,000 could rise from £3,750 to £12,000.

Although first-time buyer house prices have remained relatively stable, up just 1.1% in the last month, I expect these to shoot up over the coming months as first-time buyers face fierce competition from buy-to-let investors. The pressure is already being felt by many with demand among first-time-buyers already down 7% in the last month alone. While first-time buyers may face a tough couple of months, once the stamp duty changes come into effect in April, demand from buy-to-let investors is likely to recede so we should see a recovery in prices at this level.

Our branches have begun to see the migration of first-time buyers from traditional hotspots as they search for more for their money. Buyers priced out of Romford for example, are moving to Leigh-On-Sea.”

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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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