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Housing Market: Key Economic Indicators

Published Wednesday, November 30, 2016

Housing market: Data on house prices, mortgage approvals and house-building.

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House prices, as measured by the UK House Price Index, increased by 7.7% between September 2015 and September 2016. On a seasonally adjusted basis house prices increased by 0.5% between August 2016 and September 2016.

There are regional differences in house prices. The average price is highest in London at roughly £488,000. The lowest prices are found in Northern Ireland and the North East at £124,000 and £125,000 respectively.

UK house price index, monthly % change

Mortgage approvals in October were up 6.2% on the previous month but 3.3% down on a year ago. Approvals remain well down on pre-recession levels. There were 67,518 mortgage approvals in October 2016.

Bank of England data on the number of mortgages approved to finance house purchases are a leading indicator of house sales.

Mortgage approvals, UK

 

Housing starts increased by 6% in Q3 2016 compared with Q2 2016. Housing starts and completions have increased from the lows observed in late 2008 and early 2009 but remain below pre-recession levels.

There were 38,730 house building starts (seasonally adjusted) in England in Q3 2016, a 6% increase on the previous quarter, and 10% up on the same quarter of 2015. This is above the recent low of 17,150 in Q1 2009, but still below the 48,970 starts in Q1 2007.

There were 37,280 dwelling completions (seasonally adjusted) in Q3 2016, up 6% on the previous quarter and 7% on the same quarter of 2015. Completions remain below the peak of 48,440 completions in Q1 2007.

House building, England

 

Commons Briefing papers SN02820

Author: Matthew Keep

Topics: Economic situation, Housing

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