House prices see strong finish to 2016, reaching £222,484.

09 January 2017

House prices in Solihull increased by £85 per day on average last year
House prices in Solihull increased by £85 per day on average last year

Property price growth has seen an unexpected flourish as the year finished with its highest increase since March, new data shows.

New figures show property values overcame uncertainty surrounding the economy, jumping 1.7% between November and December. Economists had pencilled in a rise of 0.3%.

The average property value reached £222,484 in December, rising 6.5% annually and up 2.5% when compared with the same quarter of the previous year.

Property website Zoopla identified Solihull in the West Midlands as the next most likely commuter hotspot, with house price growth rising the fastest to match the annual cost of commuting by rail.

Property prices in Solihull increased by £85 per day on average in 2016, covering the cost of yearly travel to Birmingham (£745) in just nine days.

However, economists are warning that a higher-than-normal degree of uncertainty will affect housing demand in 2017.

Economic pressures such as slower economic growth, squeezes on spending power and overall constraints on affordability could all be contributing factors in a likely slowing of the industry, according to forecasts.

This article was written by the Press Association, for Legal & General. Please note the views expressed in this article are not necessarily the views of Legal & General and its group of companies.

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