House prices moderate as UK sees a supply increase

House prices moderate as UK sees a supply increase
Without doubt, the East of England was the UK's best performing region in 2016

The latest data from has highlighted a continuing decline in the London market which is impacting negatively on the national average.

However, not all regions registered average home price declines this month. The strongest rises are in the East Midlands (0.3%) and the North West (0.3%), although these figures were counterbalanced by falls in Scotland (-1.1%) and the East of England (-0.6%).

A seasonal lull is, of course, to be expected at this time of year, but the rapidly declining year-on-year trend shows the real picture. In January 2016 the annualised rate of increase of home prices was 8.2%; today the same measure is a mere 3.1%.

According to, the supply figures are telling.

New instructions on the market were up across all English regions and in Scotland and Wales in December. The largest increases were in Scotland (+23%) and the East of England (+18%). The lowest supply figures were in the East Midlands (+5%), West Midlands (+6%) and the North East (+6%). This is a relatively rare event for vendors, who often prefer to defer the decision to sell until after the festive period. Such a 'rush to exit' may have been brought about by several factors, including the changes in buy-to-let taxation, overvaluation, fears of rising interest rates and falling prices.

Without doubt, the East of England was the UK's best performing region in 2016.

Prices there have risen solidly for the last five years but this growth period looks to be coming to a close. Home prices have become seriously out of step with earnings (and rents), rising a further 10.2% over the course of the last twelve months. Prices in the region have risen by 44% during the last five years and rapidly increasing supply suggests we should expect a slowdown during the course of 2017.

Overall, the current mix-adjusted average asking price for England and Wales is now 3.1% higher than it was in January 2016, a figure that is predicted to continue its downward trend during 2017.

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MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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How is the "robust evidence" looking now?

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I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt 20 Feb 2017

Is this fake news?

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Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

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Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

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