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House Prices: 6.5% Annual Growth Signals ‘Strong Finish’ to 2016

The average value of a UK property rose to £222,484 following a good performance in December, says a new house price index.

2016 Ends Strong for House Price Growth

The average value of a UK property rose to £222,484 following a good performance in December, says a new house price index.

Published by building society and mortgage lender, Halifax, new figures have revealed that house prices in the UK increased by 6.5% in the three months to December.


The seasonally adjusted figure marks the second consecutive month of annual growth, rising from the 6.0% seen in November and 5.2% in October – a low for 2016.


In terms of quarterly growth, there was an increase of 2.5% from Q3 to Q4, with the last three months of the year significantly outperforming house price growth between July and September.


House prices also increased by 1.7% in December, up 1.1% on November’s monthly increase of 0.6%.


Commenting on the performance of the market at the close of 2016, Martin Ellis, Halifax housing economist, said:


‘House prices finished 2016 strongly. Prices in the final quarter of the year were 2.5% higher than in the previous quarter. The annual rate of growth increased, rising for the second consecutive month, from 6.0% in November to 6.5%.’


The index also restated Halifax’s projections for the year ahead, with the lender forecasting growth of between 1% and 4% for 2017.


Mr Ellis said, ‘The relatively wide range for the forecast reflects the higher than normal degree of uncertainty regarding the prospects for the UK economy this year.’

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