0151 353 3500   |   hello@barbour-abi.com
Barbour ABI Blog

House prices cool for summer

by Barbour ABI Content Team

House price growth is slowing which could have an impact on the speed of housing construction…

Reading over the latest output figures from the Office for National Statistics it appears that construction continues to perform strongly in the first quarter of 2017. The industry grew by 0.2% in Q1 compared with the final quarter of 2016. However, looking at the monthly data in the first quarter it is clear that some momentum was lost in March, with output down by 0.7% compared with February. However, overall the start of the year has shown the market conditions remain favourable.

It is interesting that new housing continues to be the area of construction that fuels growth and this is demonstrated by the fact that output in the sector increased by 0.2% in the first quarter and it also grew in March when other sectors did not. This is set against a backdrop of a housing market that appears to be softening. The Nationwide House Price Index has detected house price falls in both March and April and the Halifax index recorded the first quarterly fall in house prices since 2012. While both of these indices are based on asking prices, the ONS report on sold prices shows that house price inflation across the UK was 4.1% in March, down from 9.4% in June 2016. For clues as to why this is falling, it is worth looking at the regional growth in house prices.

London, so often the centre of housing activity and the main contributor to UK-wide average price growth, has annual house price growth of 1.5%, down from 16% in 2014. It is the east of England which is now the region with the highest rate of house price growth, with a rate of 6.7%.

So, with rampant house price inflation cooling, you may expect some impact on the new build market as the returns available for developers lessen. However, both output and new orders for housing remain strong. What is happening is that there is more interest in the regions with the highest price increases, which is understandable.

However, if price growth elsewhere in the UK starts to moderate as it has done in London, it will be interesting to see whether housing construction continues at its current pace.

About the author

Picture of Barbour ABI Content Team

Barbour ABI Content Team

The Barbour ABI content team is a part of the Marketing department and they strive to produce engaging, relevant content to keep you up to date with the latest construction industry insight.

At Barbour ABI we're revolutionising the way we deliver content to the construction industry. From blog posts to reports, we're want to deliver the key information that you need at a pace that allows you to quickly digest and continue with your busy work day.

Recent News

Barbour ABI Blog


Barbour ABI Blog


Barbour ABI Blog


Claim your 10 free project leads today

Get a Free Trial

Just fill in your details below and a member of our team will give you a call.

Claim your 10 free project leads today

Book a Demo

Helping Contractors

Win More Business

Get in touch with us and see how we can help you win more work.




Barbour ABI White Logo

Place of registration: Barbour ABI Limited Company number: 13427982, Registered office: 5th Floor, 133 Houndsditch, London, EC3A 7BX