House Prices in Swindon defied the gloom in the property market to rise faster than the national average this year, new figures show today
According to Swindon-based building society Nationwide, property values rose by 2% during the final three months of 2011, ahead of the UK-wide price rise of 0.3%.
The increase in Swindon makes up for the 2% drop in values over the previous three-month period.
The price fluctuations mean Swindon continues to possess the most affordable homes in the South West when average earnings are taken into account.
The average price of a home in Swindon is now £183,044. Only Plymouth has a lower average property value of £178,628. Swindon also had the lowest rise in house prices over the past 10 years. The 39% increase is marked contrast to Plymouth where prices have more than doubled. Neighbouring areas all saw larger house price rises including Bristol (87%), Bath (79%) and Wiltshire (59%).
But Swindon’s below average house price rise will be welcomed by those trying to get on the housing ladder in a year of job losses and widespread pay freezes. It could also make it easier for local firms to attract new staff to the town.
Across the UK the annual rate of house price growth ended the year at 1.1%.
Nationwide chief economist Robert Gardner said: “The rise in house prices recorded over the past 12 months could hardly be described as a strong performance, but against a backdrop of anaemic economic growth and a deteriorating labour market, UK house prices were surprisingly resilient.”
However, he pointed out that resilience was less evident in other areas of housing market activity in 2011, with mortgage approvals remaining low at just over half the long-term average.
Demand and supply were weak but well matched.
“Although high rates of unemployment, falling real wages
and the uncertain economic outlook kept many potential homebuyers on the sidelines, the supply side of the market was similarly squeezed,” Mr Gardner added.
“Thanks to continued low interest rates, the number of forced sales remained low. Together with a dearth of building activity in recent years, this prevented a glut of unsold homes from accumulating on the market.
“This meant that although demand and supply were both weak, they remained relatively well matched, providing little impetus for prices to move strongly in either direction.”
The new year is unlikely to bring any significant change in the market, according to Mr Gardner.
“2012 isn’t shaping up to be much better than 2011, for the UK economy or the housing market,” he said.
“With the economy struggling to gain momentum, labour market conditions are likely to remain challenging in 2012, deterring buyers from entering the housing market.
“This may tip the demand/supply balance in favour of buyers.
“However, there are few indications that a flood of properties is about to hit the market, so tight supply conditions will continue to provide some support for prices.
“The outlook is very uncertain, and will depend crucially on how the wider UK economy performs. Nevertheless, as things stand, the housing market in 2012 looks likely to be characterised by low levels of activity once again, with prices moving sideways or modestly lower over the course of the year.”
