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Housing Market: Key Economic Indicators

Published Tuesday, September 12, 2017

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 5.1% between July 2016 and July 2017. On a seasonally adjusted basis house prices increased by 0.3% between June and July 2017.

There are regional differences in house prices. The average price is highest in London at roughly £489,000. The lowest prices are found in Northern Ireland and the North East at £129,000 and £133,000 respectively.

 

UK house price index, monthly % change

Mortgage approvals in July 2017 were up by 5.2% on the previous month and up 11.3% on a year ago. Approvals remain well down on pre-recession levels. There were 68,689 mortgage approvals in July 2017, compared with 61,733 in July 2016.

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

Housing starts decreased by 3% in Q2 2017 compared with Q1 2017. Housing starts and completions have increased from the lows observed in late 2008 and early 2009 but remain below pre-recession levels.

There were 41,180 house building starts (seasonally adjusted) in England in Q2 2017, a 3% decrease on the previous quarter, but up 10% on the same quarter of 2016. This is above the recent low of 17,150 in Q1 2009, but still below the 48,970 starts in Q1 2007.

There were 40,310 dwelling completions (seasonally adjusted) in Q2 2017, up 2% on the previous quarter and 15% on the same quarter of 2016. Completions remain below the peak of 48,440 completions in Q1 2007.

Commons Briefing papers SN02820

Author: Matthew Keep

Topics: Economic situation, Housing

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