U.K. House Prices Rise at Fastest Pace in a Year
House prices in the United Kingdom rallied last month at the fastest pace in a year, reports the Singapore Business Times. The news outlet says it could be signs of a rebound for prime London property values.
Prices up 0.6 percent in February
Data firms Acadata and LSL reported February was the best month for U.K. price appreciation in a year, with prices rising 0.6 percent month over month to a U.K. average of 297,832 British Pound Sterling ($363,878), according to the report. However, year-over-year home price appreciation was more subdued. Home prices increased 2.4 percent year over year for the U.K. in February, said to be the lowest level since 2013.
London prices reverse decline
In the capital, London home prices were reportedly up 0.4 percent from December to January, according to regional data. This was good news, coming on the heels of what had been a two-month decline in prices. Gains in high-value areas of London reportedly contributed to the February rally.
Yet London “still faces challenges”
Acadata noted in its analysis that London’s property market “still faces challenges,” noting both the weak year-over-year price gain and a 22 percent slump in transactions over the last three months. Part of the challenge might be affordability. A Lloyds Bank survey reportedly showed London homes cost an average of 10 times the average worker’s annual earnings.
Other problems affecting London property prices reportedly include tax changes and market weaknesses attributed to Brexit. The capital region was said to be the worst performing U.K. region out of 10 studied.