A 2016 property market round-up

2016 was quite the eventful year by all accounts with its fair share of ups and downs and plenty to talk about from a property perspective. We take a look at the changes in UK property values, prices by region, asking prices and the collective worth of UK residential property.

Across the UK we saw some strong growth in property values in many regions, with an overall growth of 4.5% at the end of 2016, resulting in a combined value of &8.17 trillion for all UK residential property.

When broken down into regions, it appears that the East of England, with a current average property value of &358,401, saw the largest growth across the year, with a massive 11.56% rise in property value and the only region to break into double figures in 2016.

Not too far behind the East of England in 2nd and 3rd place was the West Midlands with a very respectable rise of 8.74% in value to &220,993 and South East England with a similar jump of 8.44% in value to &411,736.

At the other end of the table North East England did show some growth over the course of 2016, but only an increase of 2.41% to an average property value of &187,683. Wales ranked one place higher in the table than the North East with a 3.8% rise in value to &179,096.

Possibly the most surprising statistic from the recent index was London showing the third lowest growth in the last 12 months. While an increase of 5.12% to &680,593 is a considerable jump in value, the London region has historically been ahead of the UK average by a decent margin.

You can view the full table below…

Ranking

Region

Current Average Value

% Increase In Value Since January 2016

1

East of England

&358,401

11.56%

2

West Midlands

&220,993

8.74%

3

South East England

&411,736

8.44%

4

South West England

&297,054

7.88%

5

North West England

&190,005

7.57%

6

East Midlands

&209,183

7.42%

7

Yorkshire and The Humber

&173,362

5.58%

8

Scotland

&185,344

5.56%

9

London

&680,593

5.12%

10

Wales

&179,096

3.80%

11

North East England

&187,683

2.41%


Head of communications at Property Website Zoopla, Lawrence Hall, commented on the resiliency and stability of the property market in 2016 stating that it had “certainly been an historic year with the events of the last six months giving rise to potential political uncertainty. However, the property market - it seems - remains resilient and property values across Britain have continued to grow.”

Hall also added that “As city centre living becomes increasingly less affordable, our figures show significant increases in property values of commuter towns; those around the capital feature heavily in the top performers list.

Asking prices also took a jump in 2016 with the average in the UK rising by 3.4%, but with some areas such as Somerset and Northamptonshire raising their asking price to over 14% on average. The City of Bath tops the table here with a huge rise of 17.8% and average asking prices increasing by just over &70,000.

For many, the rise in values and stability of the property market is somewhat surprising after the uncertainty of the Brexit vote. Rob Weaver, director of investments at Property Partner, stated that “The combination of record low borrowing rates propping up demand and a severe shortage of both housing stock and available homes for sale has meant prices have continued to rise.”

Moving forward, weaver believes the outlook for UK property to be positive also, as he went on to say that ‘Overall, property prices are heading upwards slowly but surely despite uncertain times politically and economically. In the long term, the UK housing market will continue to outperform most other investment classes.


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