Title:
House Prices Set
For Greater Regional Variation
Word Count:
304
Summary:
The growth of
English house prices is slowing. In contrast, both Scottish and Northern Irish
house prices are heading for boom periods, according to new figures.
Nationwide predicts that house prices in Scotland and Northern Ireland are set
to become increasingly dislocated from trends in England and Wales, as the
countries have witnessed far faster house price growth over the year,
increasing the need for larger mortgages.
House prices in Northern Ireland rose five tim...
Keywords:
tml, mortgages,
remortgages
Article Body:
The growth of
English house prices is slowing. In contrast, both Scottish and Northern Irish
house prices are heading for boom periods, according to new figures.
Nationwide predicts that house prices in Scotland and Northern Ireland are set
to become increasingly dislocated from trends in England and Wales, as the
countries have witnessed far faster house price growth over the year, increasing
the need for larger mortgages.
House prices in Northern Ireland rose five times faster than the UK average for
the past 12 months, while the last quarter saw house price inflation in
Northern Ireland outpace the UK average ten fold. Scotland has also seen house
price growth above the UK average.
The Northern Irish and Scottish housing markets are booming and, like their
governments, have become increasingly devolved from the UK, concluded Fionnuala
Earley, Nationwide's group economist.
Meanwhile, within England, the south has resumed its position as the focus of
house price growth.
House price inflation in the south of England has now outpaced the north for
the third successive quarter. This follows an extended period when the south
lagged behind as buyers appeared to reach the limits of affordability.
London is also once again the city with the fastest house price growth, with
inflation dampening in northern cities. Nationwide reports that this is also
having a knock-on effect on the areas surrounding the capital.
There is a clear pattern of acceleration in house price growth in the south in
the regions closest to London, compared with last year. At the same time there
is clear deceleration in all of the regions in the north, concluded Ms Earley.
According to Nationwide's quarterly house price index, prices across the UK
fell back sharply in the second quarter of the year from 2.2 per cent to 0.9
per cent. However, annual growth has remained stable.
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