House Price Growth in the UK Projected to Be Modest in the Coming Months
For the coming months, house price growth in the United Kingdom is projected to be modest.
Based on the recent report from Nationwide Building Society, "UK house prices increased by 0.3 percent in January and annual growth is broadly stable at 4.4 percent, and the average price to £196,829 but the monthly rate of increase slowed from 0.8 percent in December." All of these findings were reported in a recent post published by PropertyWire.
Robert Gardner, Nationwide's Chief Economist, shared how the annual house price growth has remained modest. It was expected to range between 3 percent and 5 percent during the summer months of 2015. This annual trend was maintained in January, with house prices up 4.4 percent over the year, broadly in line with the 4.5 percent increase recorded in September, as further reported by the same post.
Gardner further said, "As we look ahead, the risks are skewed towards a modest acceleration in house price growth, at least at the national level. The labor market seems to have been significant forward momentum. Employment has continued to grow at a robust rate in recent months and, while the pace of earnings growth has slowed somewhat, in inflation adjusted terms regular wages continue to rise at a healthy pace."
Moreover, This is Money reported, "Global financial markets have seen the worst start of the year for some time, with concerns over the falling oil price and the weakening economy in China."
Furthermore, London's prime real estate market remained buoyed as global investors were looking for a safe investment to pool their money over. As economies begin to slow, including China, Russia and Brazil, the impact could be felt here as well, according to the same report.
In addition, Howard Archer, Analyst at IHS Global Insight, also added on to say, "We maintain the view that house prices are likely to see solid increases over the coming months amid healthy buyer interest and a shortage of properties."