Price growth of new builds stalls in December

In the year to end December 2016 new build house prices rose on average by 6.0% across the UK, slightly down on last year’s figure of 6.9%, according to the LSL Land & New Homes.

However, if Greater London is taken out of the calculation and we take a crude average of the remaining regions, then the average house price growth is 4.3% compared to a figure of 4.2% last year.

LSL Land & New Homes said, “In December 2015 East Anglia had seen the fastest annual house price growth with a figure of 9.1% but in the year to December 2016 this region has fallen to 7th position at 4.4%. Notwithstanding reports of price falls in some areas of prime London, the Greater London area has regained the lead position with annual growth of 9.7%.

“Evidence of the classic ripple effect moving out from Central London can be seen when looking at the next best performing regions of the South East (8.1%), the South West (6.4%) and the East Midlands (7.2%). All three of these regions are experiencing house price inflation which is ahead of the same period last year.

“Wales has seen good growth over the year rising from 1.2% in the year to Dec 2015 up to 4.5% in the year to Dec 16, only slightly behind the North West which experienced year on year growth in new house prices of 5%. Scotland, the West Midlands and Yorkshire & the Humber are experiencing growth in the 2 to 3% band but the North East has slipped back into negative territory at minus 0.5%.”

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