London - The average price
of a UK home hit a new record in January, continuing an upward trend
that’s in part being driven by a supply-demand imbalance.
The 0.3% increase in values lifted the average to £300 169, Acadata and LSL said in a report on Monday.
Annual growth was 3.1%, and prices are now double what they were in 2002.
Over 2016, London was one of the worst performers among 10 regions
analyzed, partly due to weakness in prime locations because of Brexit
and tax changes. Weakness in the city’s best neighborhoods was also seen
this month in a report from
Knight Frank, which showed
double digit-price declines in Chelsea and Kensington over the past
While price growth nationally is forecast to cool this year, the
continued appreciation is making it harder for first-time buyers. The
new plans last week aimed at boosting supply and helping young people.
Separately on Monday, Visa said its consumer index showed annual
spending growth slowed to a five-month low of 0.4% in January
after a “bumper” 2.5% increase in December. While clothing and
footwear fell the most in almost five years, there was strong growth in
spending at hotels and restaurants.
Consumer demand could come under pressure this year from
inflation, which is forecast to accelerate toward 3%. Price
growth probably picked up to 1.9% in January from 1.6%,
economists said before a report on Tuesday.
Read Fin24's top stories trending on Twitter:
Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.
24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.