UK House Prices Rebound In January - Rightmove
01-20-2015
LONDON (Alliance News) - Property prices in the UK recovered in January, after declining in the previous two months, as the recent stamp duty changes made homes cheaper for some first time buyers, figures from property-tracking website Rightmove showed Monday.
The average asking price for a house in the UK rose 1.4% from the previous month. The average price climbed to GBP 273,275 from GBP 269,477.
That follows the revised 2.2% contraction in December, lesser than the 3.3% decline estimated earlier. In November, prices had dropped 1.9%.
Prices in Greater London grew 0.9% to GBP 566,604.
On a yearly basis, house prices jumped 8.2% following the 7.0% spike in the previous month.
"Early 2015 statistics currently point in the right direction for home-movers, with the Chancellor's early Stamp Duty Christmas present perhaps being the spur for people making New Year resolutions to get on with moving," Rightmove Director Miles Shipside said.
"There are more positive signs of early-bird activity rather than pre-election jitters or economic worries deterring prospective movers. However, we are only a few days into the year and it remains to be seen whether this initial flurry is sustained."
Elsewhere today, think tank E&Y ITEM Club said very low inflation will push the first interest rate rise by the Bank of England back to 2016 and help provide renewed momentum in the housing market.
Data from the the Office for National Statistics revealed last week that U.K 's inflation slowed to a record low 0.5%, well below the central bank's 2% target.
"Real incomes are a major driver for the housing market and as they increase we should see renewed momentum this year," E&Y ITEM Club Chief Economic Advisor Peter Spencer said.
"The removal of the 'slab' effect on stamp duty is also likely to be supportive, particularly for transactions, while scrapping the annuity requirement for defined contribution pension schemes will free up funds for retirees to invest in the market."
E&Y ITEM Club raised its UK GDP growth forecast for this year to 2.9% from 2.4% previously.
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