Housing Activity

02/02/2016

• House prices in the last three months of 2015 (October-December) were 1.6% higher than in the preceding three months (July-September). The quarterly rate of change remained below 2.0% for the second successive month; its lowest values during 2015.

• Prices in the three months to December were 9.5% higher than in the same three months a year earlier. This was a little higher than November’s 9.0%, keeping the annual rate in the 8- 10% range where it was for nearly all of 2015.

• House prices increased by 1.7% between November and December. This maintained the fluctuating monthly house price pattern seen during the second half of 2015. The quarter on quarter change is a more reliable indicator of the underlying trend.

• Newham in London recorded the biggest rise in house prices among major UK towns and cities over the past year, according to separate recent research by Halifax. The average house price in the London borough was 22% higher than in the previous year; nearly double the 12% increase in London as a whole. Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital. *Based on 12 months to November 2015 compared to 12 months to November 2014

• Home sales up on a year ago. UK home sales during September to November were 5.2% higher than in the same three months last year. Sales were also 1.4% higher than in the preceding three months despite a 5.7% decline between October and November. (Source: HMRC, seasonally adjusted figures)

• Mortgage approvals on a steady upward trend. The volume of mortgage approvals for house purchases – a leading indicator of completed house sales – increased by 1% between October and November. Approvals in the three months to November were 1% higher than in the preceding three months and 16% higher than in the same three months a year earlier. (Source: Bank of England, seasonally adjusted figures)

• Supply falls again to another record low. New instructions by home sellers fell in November for the tenth successive month. This contributed to the stock of homes available for sale declining to a new record low for the eighth consecutive month. (Source: Royal Institution of Chartered Surveyors’ (RICS) monthly report) 

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