UK house prices now up 9.0% year-on-year
The Nationwide, the UK’s largest building society, released data this morning showing that UK house prices rebounded in March from February’s dip. The average UK home now costs £164,519, up 9.% from year ago levels. Much of the increase has been driven by supply-demand imbalances with a dearth of properties coming to market in the poor economic climate of 2009.
The Halifax has yet to release data. However, their data have been tracking Nationwide’s for the past few months after a divergence early last year. The chart from the BBC below shows the two price indices. Note the slowing in year-on-year house price appreciation in Nationwide’s March data.
Below is a video in which Nationwide Chief Economist Martin Gahbauer gives his view on what the data mean for the UK housing market. He notes the renewed north-south divide in house price inflation. London is booming again as a weak sterling has attracted buyers. It certainly helps that the City is doing well again. I think this is the main reason for London’s out performance.
More data from the Nationwide below.
House Prices Reverse February’s Dip – Nationwide