The Nationwide survey out today show’s a slight increase in the cost of the average house, however this is not a straightforward conclusion. The report highlights which demographics have seen growth and which have not. Area’s with less wealthy people and homes at the bottom of the price strata have most certainly not risen.
Average UK house prices are of course a misnomer. There is no such thing as one UK property market, comparing Hull with Hampstead is a non-starter and this survey needs to be taken with a large pinch of salt and a good look at the detail. This detail shows an increasing North/South divide and that transactions are focussed on the more wealthy. One must also bear in mind that these statistics are only based on one month of Nationwide’s lending. They do not let us into the number of transactions this is extrapolated from and it could be very few properties indeed. As the adage warns, Lies, damned lies and statistics.. make your own mind up with the report linked below and the Guardian and Citywire articles in which we are quoted significantly.
Nationwide survey: http://www.nationwide.co.uk/hpi/historical/Oct_2011.pdf
http://www.guardian.co.uk/money/2011/nov/01/house-prices-surprise-rise
http://citywire.co.uk/money/house-prices-still-treading-water-says-nationwide/a538050
