Pace of house prices slows to 6.7% in 2015
According to the Office for National Statistics (ONS) house prices in the UK rose by 6.7% in 2015. This shows a significant slowdown in UK house prices compared to the 9% rise reported by the ONS in 2014. This represents a fall in value of £18,000 compared to the average home in the UK which was valued at £288,000 at the end of the 2014.
The ONS reported that prices in 2015 increased fastest in Eastern England with a 9.7% increase with Scotland at the other end of the scale with a fell in house prices of 0.2% during 2015.
The breakdown of where house prices rose fastest in 2015 can be seen below:
Looking at other organisations that have made predictions relating to house prices in 2015, we can see that there has been a substantial variation here.
Halifax presented the highest prediction with their published figure of 9.5%, whereas Nationwide Building Society believed the figure was much lower, stating that UK house prices only increased by 4.5%. The ONS, who’s figures are regarded as the most reliable data on house prices, show that both of these predictions are way off the mark.
These figures are a positive sign for UK home-owners but experts are still warning that these increases far outstrips the 2% wage growth figure, meaning a continue housing crisis in the UK.
Jan Crosby, head of housing at accountants KPMG, who believes this crisis will only worsen if the supply of new homes in the UK isn’t increased, told the Guardian newspaper:
“In 2005, the average price of a home was £186,000 – by 2015 it was £288,000. An increase of more than £100,000, or 55%, in just 10 years is concerning. In 2005, average annual earnings were £18,949 and by 2015 the ONS recorded them as £22,487. If we don’t see reform, in another 10 years the gap between house prices and earnings may have become truly impassable.”
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