Some encouraging news to report during a continuing uncertain economic climate. According to the latest figures published by the Nationwide, average residential property prices in the UK increased by 0.4% in October with the typical house now costing £165,650. This means that the price for the average house in October is 0.8% higher than one year ago putting annual house price growth into positive territory for the first time in 6 months. There are inevitable regional variances to be found with these statistics, the London markets generally out performing many of the regions.
It has also been recently reported by leading conveyancing practitioners that the number of residential transactions that fall through before exchange of contracts has fallen by 8% in the last year which I view as an encouraging and not often reported statistic.
Given the challenging economic back drop both throughout the UK and the Eurozone at large this data might seem very exciting. However it doesn’t fundamentally alter my thoughts that the housing market continues to tread water with property transaction levels remaining subdued and prices essentially flat compared to last year.