In the year to end September 2016 new build house prices rose on average by 5.8% across the UK.
The regional picture continues to show a North/Southdivide, with crude average growth (excluding Greater London) now standing at 4.2%, down against last year’s figure of 4.4%, according to the LSL New Build Index.
Greater London has retained a slight lead over other regions, with a growth in new build house prices of 9.1%, which is down on last year’s figure of 10.1%. The South East is in second place for growth at 7.4% closely followed by the East Midlands which achieved 7.1% growth.
The South West maintained their growth rate at 6.6%. East Anglia fell back to 5.5% new build house price growth, and West Midlands fell back further to 1.6% This is below the low last month of 3.3% in the West Midlands and is significantly lower than September 2015, when growth in new build house prices in the region was at 5.4%.
Prices in Scotland show the greatest growth in new build house prices in the North, at 4.3% compared with 3.2% in 2015. The North West has decreased slightly against last month at 3.4% but remains ahead of the rest of the North region in our report, with Yorks and Humberside sitting at 2.4% and Wales at 2.5%. The North East has maintained positive growth at 0.7%.
Looking ahead, Shaun Peart, Managing Director of LSL Land & New Homes, said, “The next Autumn Statement will be interesting to hear. It’s all about to change. Whilst we are still filled with the aftermath of Brexit and what it means for the future, not to mention the pound in our pocket, Chancellor Philip Hammond has announced that he plans to borrow to invest in the housing market.
“The House Building Fund provides assistance in the form of cheap loans, funding or guarantees and is aimed at SMEs and average size developer to kick start the building programme. This also implies the Government will be taking on more risk.
“The outcome of these changes, the Prime Minister not willing to build on countryside and investment into housing means that by 2026, the treasury will be back in profit, we will have greater stability in the houses prices and 2 million more homes will have been built. This can only be a very positive big leap forward, for the public and the house building industry at all levels.”