- Asking prices for marketed properties in the UK increase 0.8% to near a record high.
- National total sales that were finalized posted a 12.3% annual increase.
- RIC announced the house prices to have increased at the fastest pace in January in almost 3 years.
Rightmove’s House Price Index (HPI) for the United Kingdom came out on Monday. According to the property website, asking prices for houses in the UK placed on sale in February saw an increase this month that was fueled by the market optimism after Prime Minister Boris Johnson won the general election on December 12th.
Monday’s report offered an insight into the marketed property between January 12th and February 8th. As per the data, asking prices for such properties saw a 0.8% monthly increase. While it was significantly lower than a 2.3% increase that was recorded last month, the jump was sufficient to bring the HPI (House Price Index) close to its record high.
National Total Sales Increased 12.3% Annually
In terms of national total sales that were finalized, Rightmove announced a 12.3% annual increase. The increase in sales agreed in London, on the other hand, was reported at a much higher 26.4% annually.
Rightmove’s director Miles Shipside commented on Monday’s data and highlighted that the seller confidence is starting to show signs of recovery for the first time in many years. Although, it is still distant to the increase reported in early-bird buyers.
Experts also accentuated on Monday that the UK’s housing market has also shown other signs of recovery following Conservative’s victory in the general election of December 12th. According to the Royal Institution of Chartered Surveyors, last week’s data on house prices suggested the fastest rate in January in almost three years.
Macroeconomics Continue To Be Uncertain For UK’s Market
Despite the optimism, however, the macroeconomic scenario continues to be uncertain for the United Kingdom. The UK is currently negotiating with the EU to strike a broader trade deal within the deadline of December 2020. Britain is also interested in defining its trade terms with other countries as an entity outside of the European Union following its departure from the EU on January 31st. Any friction between the EU and the UK regarding trade relations, as per the analysts, can be expected to cast a dramatic impact on financial indices including the HPI.
Rightmove’s House Price Index was unable to stir a significant movement in the forex market with the GBP/USD currency pair continuing to trade between 1.3044 and 1.3051 earlier on Monday. The next significant move in Cable is expected on Tuesday after the Office for National Statistics reveals its average earnings index.
By Michael Harris