Nationwide HPI House Price Index at the end of 2013 reported seeing continued momentum in the closing period

NationwideNationwide HPI House Price Index at the end of 2013 reported seeing continued momentum in the closing period.

Key News:

  • UK House prices increase by 1.4% over the month of December
  • Prices were up 8.4% agains the same period last year, i.e. December 2012
  • House prices still stand approximately 5% below the peaks of 2007
  • UK Average House price now stands at £175,826

Commenting on the figures, Robert Gardner, Nationwides Chief Economist, said:  

“The UK housing market followed the trajectory of the wider economy through 2013, gaining momentum as the year progressed. The average monthly increase in house prices rose from 0.4% in the first half of the year to 1% in the second half of 2013. Overall, prices increased by 8.4% in 2013, though they remain around 5% below the all-time highs recorded in late 2007.

……

“A large part of the pickup in the housing market can be
attributed to further improvements in the labour market and
the brighter economic outlook, which helped to bolster
sentiment amongst potential buyers. Policy measures also
played an important supporting role by helping to keep
mortgage rates close to all-time lows and improving the
availability of credit, especially for those with smaller
deposits.

Robert Gardner goes on to states how affordability is around 29% of take home pay for a first time buyer. This is being supported at present by ultra-low level of interest rates. However if the demand seem in 2013 continues to outstretch the supply, then this relatively high affordability will become very stretched.

Quarterly Regional picture

Regional across the year London has outperformed all regions, approaching a 15% increase in house prices. However all regions have seen increases ranging from approximately 8% for outer London, through to approximately 2% for the North.

Commenting on the figures, Robert Gardner, Nationwides Chief Economist, said:

“The price of a typical UK house rose by 2.7% in Q4 2013, after allowing for seasonal effects. Prices were up 7.1% over the year as a whole.

…….

“Amongst the English regions, the South of England and the Midlands continued to outperform the North. Outside of London, the Outer Metropolitan was the strongest performing region, with annual price growth of 8.6%, whilst the North continued to be the weakest English and also UK region, with prices up 1.9% over the year.”