UK house prices in the country remains steady with the largest annual price growth recorded in Scotland rising 6.7% for the year.
Research from the Office of National Statistics (ONS) reveals house price growth in Scotland was 6.7% for the year and 0.5% month-on-month with average property values of £146,009.
One advantage of rising house prices for homeowners in Scotland is remortgage buyers can release capital for home improvements which could improve its value.
The second fastest growing region was the East of England with annual house price growth of 5.8% followed by East Midland higher by 5.6%.
The lowest was in London recording negative annual price growth for the second consecutive month at -0.7% compared to the UK up 4.2% for the year and average property values of £224,144.
More regions declining over the month
Out of all the regions only London decreased over the year although month-on-month nine out of the twelve regions decreased, more than last month, with the North East down -1.5%.
The following table from the ONS shows average house prices and annual change for homeowners to February 2018.
| Region | Average price | Monthly change |
|---|---|---|
| Scotland | £146,009 | 6.7% |
| East of England | £289,729 | 5.8% |
| East Midlands | £185,568 | 5.6% |
| North West | £155,788 | 5.2% |
| West Midlands | £187,905 | 5.1% |
| South West | £255,307 | 4.9% |
| Northern Ireland | £130,482 | 4.2% |
| England | £242,286 | 4.0% |
| Yorks and the Humber | £156,484 | 3.7% |
| Wales | £153,034 | 3.5% |
| South East | £323,435 | 3.3% |
| North East | £122,870 | 2.1% |
| London | £485,830 | -0.7% |
Scotland and Northern Ireland were the only regions to increased over the month and for England on average monthly change was -0.3% and annual change up 4.0% with average property values of £240,949.
The rise in house prices means many prospective home buyers would continue renting or consider the Help to Buy scheme or Shared Ownership to progress on the property ladder.
For home movers leaving areas with the highest rising values to areas with lower growth, they may have extra equity for a deposit to buy a larger home or can reduce their mortgage.
London has the highest house price of £485,830 followed by the South East with £323,435 and East of England on £289,729.
For older homeowners the equity release buyer can access this wealth using a lifetime mortgage for any purpose such as home and garden improvements, holidays of a lifetime or pay for care at home.
London house prices remain negative
According to the latest report from The Royal Institution of Chartered Surveyors (Rics), London continues to exhibit the weakest expectation with -47% of respondents citing further price declines.
Any reduction in house prices for London is good news for first time buyers as they would require a lower deposit or smaller mortgage to get on the property ladder.
Rics asks their members option about the direction of house prices giving a net balance between -100% (all negative) to +100% (all positive).
This also remains negative in the South East, East Anglia and the North East, but to a lesser extent than in the capital where prices are expected to fall.
For the country demand fell for the 12th consecutive month due to ongoing concerns over affordability and lack of new instructions coming onto the market.
A sign of difficult market conditions for London is that 55% of respondents recorded a rise in the number of properties being withdrawn from sale compared with a year ago.
The lack of new home could mean remortgage buyers remaining at home and increasing their mortgage to releasing capital which they can use to improve their property.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release calculator, mortgage cost calculators, and property value tracker chart.
For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to improve your quality of life or even buy a more expensive home.
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