Many UK regions saw rises in house prices during 2011, according to a new report. Figures from Nationwide show values rose by 0.3 per cent on average across the board in the fourth quarter and by 1.1 per cent to GBP 163,822 for the year as a whole. Nine of the 13 UK regions recorded increases in prices, with London leading the way with annual growth of 5.4 per cent.
The outer Metropolitan and Yorkshire and Humberside regions followed with increases of 2.6 per cent and 1.6 per cent respectively, while the outer south-east, Wales and East Anglia also posted rises of at least 1.5 per cent each. Areas that saw a decline in 2011 house prices included Northern Ireland (8.9 per cent), the north-west (1.2 per cent) and the north (one per cent).
Nationwide chief economist Robert Gardner said the overall increase for the UK shows “house prices were surprisingly resilient in 2011”. He added that it is possible 2012 will bring a slight shift in the market to the benefit of those looking to invest in property, stating: “With the UK economy struggling to gain momentum, labour market conditions are likely to remain challenging in 2012, deterring buyers from entering the housing market. This may tip the demand/supply balance in favour of buyers.”
The report comes after Halifax released its own UK property market figures last week. It revealed that Woking saw the largest rise in values – 16 per cent – out of the biggest cities and towns, followed by Falkirk in Scotland with 12 per cent. Halifax housing economist Martin Ellis noted that both towns are located within commuting distance of large commercial centres, with Woking within reach of London and Falkirk situated between Edinburgh and Glasgow. Most of the worst performers were located outside of the south of England.