All Houses, All Buyers Index (1983=100)
Index (seasonally adjusted) 459.7
Monthly Change 1.8%
Annual Change 15.4%
Standardised Average Price (seasonally adjusted) £142,033
Key Points
* House prices increased by 1.8% in December, underlining the strength of the market. House prices rose by 15.4% during 2003, down from the 26.4% increase experienced during 2002.
* 2003 was definitely the 'Year of the North', with annual house prices rising in the North by 33.7% - over twice the average UK rate (15.4%). In the south, annual house price gains during 2003 were; East Anglia (14.6%), Greater London (8.6%), the South West (6.7%) and the South East (5.8%). Annual House price growth in Wales was 31.8%, in Scotland 17.1% and in Northern Ireland 13.8%.
* All regions of the UK have experienced house price increases during the final three months of 2003. The largest increases were seen in Wales (11.2%) and in the North (8.9%). House prices in Greater London increased during the final quarter of 2003 by a healthy 3.7%, up from the 2.1% growth experienced in the preceding three months.
* During 2003, a further 88 towns in the UK saw average house prices rise over the £100,000 threshold for the first time. The average house price in 505 (80%) of the 634 UK towns analysed is now in excess of £100,000.
* The three pillars that have underpinned the housing market during the past few years – low interest rates, good employment levels and good affordability - will continue during 2004. Unemployment levels continue to fall - the claimant count has fallen to 917,800 in November, down 2.2% on November 2002. There are no indications that unemployment levels will change dramatically during the next few years.
* UK house price growth is forecast to rise by 8% during 2004, close to the long term average.
