UK House Price Index, February 2017 - PwC comments

Published at 10:13 AM on 14 February 2017

Final official housing figures for 2016 show a strong end to the year

Commenting on the UK House Price Index out today, Richard Snook, senior economist at PwC, said:

“The official ONS and Land Registry house price figures showed that average UK house price inflation was 7.2% in the year to December, up from 6.1% in November. This takes total inflation rate for 2016 as a whole to 7.6%, up from 6.0% in 2015. The average price of a UK home is now £220,000 with the typical homeowner making a £15,000 capital gain over the last 12 months, compared to the median UK full-time salary of £28,000.  

“While good news for existing homeowners, however, this further rise in property prices – at four times the rate of consumer price inflation and more than double average earnings growth – will take home ownership even further out of reach for Generation Rent.

“The good news for prospective future buyers is that we do expect a gradual slowdown in house price inflation in 2017 with our scenarios ranging from between 2% and 6% growth. There are several headwinds affecting the housing market over the next couple of years: uncertainty related to Brexit, rising consumer price inflation with consequent downward pressure on real earnings growth and, in the longer run, the potential for a supply increase due to initiatives in last week’s White Paper.”

Ends.

For further information please contact Tilly Parke: tilly.parke@pwc.com / +44 20 7804 8761

 


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