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House Prices Steady at Start of 2017

Property values are remaining steady but are growing more slowly, in line with market projections, according to a new index.

Property Prices Remain Steady at the Start of 2017

Property values are remaining steady but are growing more slowly, in line with market projections, according to a new index.

Over the course of January, house prices rose by 0.2% from December, reaching a new average of £205,240, following the 0.8% increase seen in the previous month.


Annual growth has also slowed at the start of 2017, with the rate of year-on-year growth standing at 4.3% in January – down from the 4.5% seen in December.


Following strong growth in 2016, Nationwide’s chief economist, Robert Gardner said: ‘On balance we agree with the consensus view that the economy is likely to slow through 2017 as the squeeze on household budgets intensifies and heightened uncertainty weighs on business investment and hiring.’


Mr Gardner indicated that there may be a moderation in employment and wage growth in the coming months, following the pattern of earnings increases, which has already steadied in recent months.


Commenting on the market, Mr Gardner said: ‘The outlook for the housing market remains clouded, reflecting the uncertainty surrounding economic prospects more broadly.


‘On the other hands, there are grounds for optimism. The economy has remained far stronger than expected in the wake of the Brexit vote. Recent data indicates that the economy didn’t slow in the second half of 2016 and the unemployment rate remained stable, at an 11-year low in the three months to November.’


Whilst property price growth has slowed slightly at the start of 2017, the number of housing transactions increased in December. HMRC revealed that there had been 0.2% monthly increase from November as 97,250 transactions were completed in the UK.

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