UK House Prices Statistics 2012

UK House price statistics for 2012.

In 2011, UK house prices were broadly flat. There was a mixture of news with house prices almost undecided which way to go.

In 2012, UK house prices are likely to fall because:

• Double dip recession. Economic growth stagnant and high unemployment
• House prices still unaffordable for many first time buyers
• Ongoing credit crunch, limiting mortgage availability.

However, like 2011, house price falls are likely to be small because:

• Low interest rates likely to remain.
• Continued shortage of supply in housing. Lowest number of house builds since 1930s.

Average House Prices

At the end of 2011 (Q3) , average UK house prices were £166,587 (Nationwide)

During 2011, the biggest rise in house prices occured in London, helped by strong overseas demand.

north v south house prices

House Price to Earnings Ratios

House prices continue to be very high compared to earnings, especially in London and the south

 Mortgage / Renting

Tight mortgage conditions and continued high house price to income ratios has seen a decline in % of housing owned with a mortgage.

Housing building in UK fell to record low levels. – Well below the governments target for home building of 250,000 a year.