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Housing Market: Key Economic Indicators

Published Wednesday, August 15, 2018

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 3.0% between June 2017 and June 2018. On a seasonally adjusted basis house prices were broadly unchanged between May 2018 and June 2018.

There are regional differences in house prices. The average price is highest in London at roughly £477,000. The lowest prices are found in Northern Ireland and the North East at £133,000 and £127,000 respectively.

UK house price index

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

Mortgage approvals for house purchases in June 2018 were down 0.2% on a year ago but up 1.4% on May 2018. Approvals remain well down on pre-recession levels. There were 65,619 mortgage approvals in June 2018, compared with 65,746 in June 2017.

UK Mortgage approvals

Housing starts and completions have increased from the lows observed in late 2008 and early 2009 but remain below pre-recession levels.

There were 39,350 house building starts (seasonally adjusted) in England in Q1 2018, a 5% decrease compared with the previous quarter, and an 8% decrease compared with the same quarter of 2017. This is above the recent low of 17,110 in Q1 2009, but still below the 48,980 starts in Q1 2007.

There were 38,160 dwelling completions (seasonally adjusted) in Q1 2018, a 9% decrease compared with the previous quarter, but a 4% decrease compared with the same quarter of 2017. Completions remain below the peak of 48,440 completions in Q1 2007.

Housing starts and completions

Commons Briefing papers SN02820

Author: Matthew Keep

Topics: Economic situation, Housing

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