UK house prices gain 1.1% rise

(As stated on Sky news website)


Nine out of 13 regions in the UK recorded a house price rise over 2011, in a year that saw a low level of both buyers and sellers. In the best-performing city, Bradford, the average cost of a property rose by 10% year-on-year according to Nationwide. Meanwhile a rise of 15% was recorded in one London borough - Islington - while properties in the city as a whole gained 7%, as did homes in Cambridge. The figures contrast sharply with the UK's worst-performing city, Belfast, where prices slumped by 19% year-on-year. Carlisle and Edinburgh also had a poor 2011, with average prices falling by 8% and 6% respectively. Across the nation as a whole, the annual increase was a "surprisingly resilient" 1.1%, pushing the price of a typical home to £163,822 over the year, despite a 0.2% month-on-month fall in December. 


With the UK economy struggling to gain momentum, labour market conditions are likely to remain challenging in 2012, deterring buyers from entering the housing market which may tip the supply and demand balance in favor of buyers. However, there are few indications that a flood of properties is about to hit the market, so tight supply conditions will continue to provide some support for prices which has been the result of house prices to rise over the year in the 9 regions. Taking into account regional changes over the year, homes in Northern Ireland are regarded as the most affordable in the UK.

Region, average price and percent change

London: £298,216, 5.4%
Outer Metropolitan: £247,058, 3.6%
Yorks & Humberside: £134,467, 1.6%
Outer South East: £198,363 1.6%
Wales: £135,308, 1.5%
East Anglia: £167,900, 1.5%
East Midlands: £139,669, 0.6%
South West: £184,316, 0.6%
West Midlands: £146,109, 0.3%
Scotland: £136,347, 0.8%
North: £115,716, -1.0%
North West: £135,427, -1.2%
Northern Ireland: £113,614, -8.9%