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Scotland and North of England lead house price rebound in Q4

Staff Writer |
UK house prices rebounded in the final quarter of 2016, according to the latest data from the Halifax House Price Index, administered by IHS Markit.

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The 2.7% quarterly rise in Q4 meant that UK house price levels more than recovered from the dip seen in Q3, when prices declined at the fastest pace for over five years (-0.6%).

In cash terms, the standardised UK property price increased to £219,556 at the end of 2016, up from £213,803 in the previous quarter. Moreover, the nominal rise over the quarter (£5,753) was the largest since Q2 2015.

Looking at the annual rate of change, the latest figures reveal that UK house prices are 6.5% higher than in Q4 2015. However, this represents a slowdown from peak seen in Q1 2016, when the annual rate of house price inflation reached its postcrisis peak (+10.1%).

Looking at prices compared with Q3, higher property prices were recorded in nine of the twelve UK regions during Q4 2016. Scotland experienced the fastest rate of house price inflation (+6.5%), followed by the North of England (+6.3%).

Wales (-6.4%) and Northern Ireland (-2.0%) registered the largest declines in Q4 2016, followed by East Anglia (-1.5%). In London, property prices rose by 2.0%, which was the first upturn since Q1 2016, but still slower than seen across the South East (+2.5%).

Looking at how prices compared with a year ago, Northern Ireland (+12.8%) saw the fastest rate of house price inflation in Q4, followed by the West Midlands (+9.8%).

Meanwhile, the latest annual growth rate for London (+7.0%) was the lowest for three-and-a-half years. This signalled a marked slowdown from the 16-year peak seen at the start of 2016 (+21.2%).

Wales was the only area to see an outright yearon-year fall in property prices during Q4 (-4.9%).

he standard house price in London is currently £445,769 according to the Q4 data, which is more than double the UK number (£219,556).

At the other end of the scale, average house prices in Northern Ireland are the lowest of the 12 regions and £85,750 below the UK-wide figure.

At its peak in 2007, the standard house price in Northern Ireland was higher than every UK region except London and the South East.

In the South East, the standardised average house price was £335,593, which exceeds the UK figure by 153% (around the largest degree since 2003).

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