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UK house prices creep up across the board while London continues to slow

Leading lettings and sales agent, Benham and Reeves, has released the latest of its very own quarterly house price index based on data from the top four existing indices, looking at where the average house price sits and how the gap between buyer and seller expectation and actual sales has changed.

The Benham and Reeves house price index combines data from the four leading industry indices to give a singular figure of how the UK market is moving based on both buyer and seller sentiment, as well as looking at the difference in these indices and what they reveal about the state of the current market.

Current property values

The latest index from Benham and Reeves shows that the current overall average UK house price is sitting at £252,487 having increased by 0.3% on the previous quarter, up by 0.9% on an annual basis.

In London, the average property value climbs to £513,180, up 0.2% on the previous quarter although values in the capital are still down -0.8% on an annual basis.

Sellers remain over expectant

The latest quarterly data from Nationwide and Halifax shows that the amount UK buyers are committing to borrowing has fallen -0.7% to an average of £224,490.

Tough market conditions have also caused the average asking price expected by UK home sellers to fall quarter to quarter, although the drop has been more marginal at -0.4% and at £306,321, the average UK asking price is still some 36.5% higher than the mortgage approval sum.

This over expectation is also evident when comparing asking prices to sold prices, with the current average sold price coming in at £234,075, -23.6% lower than the current average asking price, although sales prices themselves have crept up 2.1% on the previous quarter.

A tougher time for the London market means this gap between seller expectation and market reality is smaller, although the difference between the average price approved by Nationwide and Halifax and the average asking price is still at 33.1%, while sold prices in the capital are still some -21.9% lower than the current average asking price. Although, again, sold prices have increased by 2.6% quarter to quarter.

Director of Benham and Reeves, Marc von Grundherr, commented:

“An over-inflated asking price is a common occurrence in the market and one often driven by a seller’s emotions coupled with the tendency for an agent to overvalue in order to win business.

However, with political uncertainty causing a large degree of market turmoil, we’ve seen many sellers lower their asking price expectations in order to secure a sale. As a result, there has been a slight uplift in sold prices as buyers agree to meet in the middle, however, the deficit between what we believe our homes are worth and what buyers are actually paying remains rather large.

As we enter a new decade we may see this gap continue to close, but the likelihood is that as market activity heightens we will once again see asking prices increase as buyer activity returns and UK home sellers chance their arm at a higher price point.”

Benham and Reeves House Price Index
UK
Year Quarter Average House Price Quarterly Change Annual Change
2018 Q1 £245,074
Q2 £248,245 1.3%
Q3 £250,244 0.8%
Q4 £248,513 -0.7%
2019 Q1 £247,463 -0.4% 1.0%
Q2 £251,682 1.7% 1.4%
Q3 £252,487 0.3% 0.9%
Benham and Reeves House Price Index
London
Year Quarter Average House Price Quarterly Change Annual Change
2018 Q1 £519,238
Q2 £520,412 0.2%
Q3 £517,059 -0.6%
Q4 £514,976 -0.4%
2019 Q1 £504,731 -2.0% -2.8%
Q2 £512,193 1.5% -1.6%
Q3 £513,180 0.2% -0.8%
UK
Year Quarter Mortgage
Approvals Price
Difference Asking Price Difference Sold Price
2018 Q1 £218,231 -27.4% £300,684 -25.4% £224,319
2018 Q2 £219,116 40.4% £307,745 -26.3% £226,869
2018 Q3 £221,959 37.4% £305,060 -24.1% £231,438
2018 Q4 £220,522 37.1% £302,239 -23.8% £230,274
2019 Q1 £221,578 35.6% £300,481 -24.3% £227,608
2019 Q2 £225,987 36.2% £307,691 -25.5% £229,276
2019 Q3 £224,490 36.5% £306,321 -23.6% £234,075
London
Year Quarter Mortgage
Approvals Price
Difference Asking Price Difference Sold Price
2018 Q1 £473,776 30.8% £619,905 -23.1% £476,653
2018 Q2 £468,845 34.0% £628,174 -23.8% £478,555
2018 Q3 £468,544 31.2% £614,537 -21.9% £480,090
2018 Q4 £466,988 31.5% £614,044 -22.4% £476,273
2019 Q1 £455,594 32.8% £605,178 -22.9% £466,356
2019 Q2 £465,722 32.7% £618,232 -24.5% £466,683
2019 Q3 £460,686 33.1% £612,967 -21.9% £478,594
Mortgage Approvals Average House Price*
Year Quarter UK London
Average House Price Difference Average House Price Difference
2018 Q1 £218,231 £473,776
2018 Q2 £219,116 0.4% £468,845 -1.0%
2018 Q3 £221,959 1.3% £468,544 -0.1%
2018 Q4 £220,522 -0.6% £466,988 -0.3%
2019 Q1 £221,578 0.5% £455,594 -2.4%
2019 Q2 £225,987 2.0% £465,722 2.2%
2019 Q3 £224,490 -0.7% £460,686 -1.1%
*Based on mortgage approval house price data from Halifax and Nationwide
Average Asking Price*
Year Quarter UK London
Average House Price Difference Average House Price Difference
2018 Q1 £300,684 £619,905
2018 Q2 £307,745 2.3% £628,174 1.3%
2018 Q3 £305,060 -0.9% £614,537 -2.2%
2018 Q4 £302,239 -0.9% £614,044 -0.1%
2019 Q1 £300,481 -0.6% £605,178 -1.4%
2019 Q2 £307,691 2.4% £618,232 2.2%
2019 Q3 £306,321 -0.4% £612,967 -0.9%
*Based on asking price data from Rightmove’s House Price Index
Average Sold Price*
Year Quarter UK London
Average House Price Difference Average House Price Difference
2018 Q1 £224,319 £476,653
2018 Q2 £226,869 1.1% £478,555 0.4%
2018 Q3 £231,438 2.0% £480,090 0.3%
2018 Q4 £230,274 -0.5% £476,273 -0.8%
2019 Q1 £227,608 -1.2% £466,356 -2.1%
2019 Q2 £229,276 0.7% £466,683 0.1%
2019 Q3 £234,075 2.1% £478,594 2.6%
*Based on sold price data from the Land Registry House Price Index
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About the Author

Marc has been a board director since 2001 and oversees the company’s rental operations as well as developing new business. He is instrumental in the company’s expansion and works closely with Managing Director Anita Mehra to develop its core services. Read more about Marc von Grundherr here - Read full profile

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