UK house prices are rising at their fastest pace in nearly three months, as the property market stabilizes after months of turmoil.
The past three months have provided some reassurance to the British public and to UK house prices, which is reflected in rising house prices, meaning that consumer confidence is returning to some extent. Possibly.
There have also been developments in British politics and Brexit since the December election, when Boris Johnson swept Labour’s chambers.
As I write this now, my colleague sitting on my right is providing an update on the cabinet reshuffle as Boris Johnson looks to revamp his advisory board to restore Britain’s confidence in the government. I’m typing.
According to the Royal Institute of Chartered Surveyors (RICS), the house price index rose to +17 in January from -2 in December.
“It remains to be seen how long this newfound market momentum will last, and political uncertainty may resurface towards the end of the year. But for now, our contributors are optimistic.” said Simon Rubinson, chief economist at RICS.
Notably, the January reading was the highest reading since May 2017 and exceeded both analyst and market expectations.
Market traders and property experts praised strong growth in London and the south-east, which have previously faced challenges, as Brexit weighs on the UK property market.
More properties being put up for sale and stable purchase rates also led to a rise in house prices across the UK, with these two indicators posting their fastest rise since August 2013.
Halifax also reported a 4.1% annual increase in home prices, the largest increase since February 2018. Notably, the Bank of England also announced that lenders had approved the most new portages since July 2017.
Indeed, the election results and the UK’s official break with the European Union have brought some stability to the property market.
While there is still a long way to go and many of the provisions of Brexit will be rolled out, this is a good sign that the property market has recovered over the past few months.
