Full year figures show prices advanced 4.8% across the UK, outpacing earnings growth for fifth consecutive year
Commenting on the ONS house price data, published today, Richard Snook, senior economist, PwC, said:
“Today’s figures complete the ONS and Land Registry figures for 2017 and show house price inflation edged up to 5.2% in the year to December, from 5.0% in November, taking the price of a typical UK house to £226,760.
"This reveals a full year house price increase of 4.8% across the UK, marginally above our projection of around 4%, released at the beginning of the year.
"It also shows that house price growth has outpaced average earnings growth for the fifth consecutive year, further ratcheting up the affordability challenge. Cumulatively, house prices have increased by 22% more than earnings between 2012 and 2017.
"In terms of regional trends, London prices showed a slight recovery from the sharp fall in November so the picture is one of a market that has plateaued since the summer. London prices are just 2.5% above their level a year ago. This effect appears to be spreading to the next most expensive regions, the South East and the East, where prices have been flat since July."
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