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LSL New Build Index November 2015
The market indicator for New Builds
It’s no doubt that the Spending Review has brought even more positive news for the house building industry - with new
Regions
Yr to Oct 15
Yr to Oct 14
Schemes and Initiatives announced that will help even more
East Anglia
8.7%
4.9%
people realise their dreams of home ownership but what about
East Midlands
5.2%
4.5%
Greater London
9.4%
15.4%
North East
1.3%
1.7%
previous cycle, around the mid 2000’s, whilst some prime
North West
3.6%
3.5%
London Boroughs have seen close to a doubling of prices
Scotland
2.1%
2.9%
since the last downturn. And whilst wages are now growing
South East
7.5%
5.4%
South West
3.7%
5.3%
Wales
1.9%
2.4%
West Midlands
4.8%
4.4%
Yorkshire and the Humber
2.0%
1.8%
Average excluding GL
4.1%
3.7%
current new build prices? Shaun Peart, Managing Director for LSL Land & New Homes comments: “In some parts of the country prices are lower than they were at the height of the
in real terms, this follows a long period of economic instability with big question marks arising about the potential effect on mortgaged households of even a slight increase in the base rate. In terms of Year on Year house prices for new builds, the overall price index remains relatively static at 6.1%, which is slightly down on last Octobers figure of 6.4%, and last month’s figure of 6.5%. – as the graph opposite illustrates. As can be seen from the graph overleaf East Anglia and Greater
Greater London appears to be a market that is close to flat with
London are converging, with the prospect of East Anglia taking
each month of low or zero growth pulling the annual figure a
the lead as the highest price growth region, by the New Year.
little bit lower. But much of the price growth in recent years in
In the year to October 2014 Greater London was seeing Year
Greater London has occurred close to the centre where prices
on Year price growth of 15.4% and over the past year this has
are highest and this slowing of price growth could simply be
steadily declined to stand at 9.4%. So the overall reality in
reflecting a move to lower priced areas along the transport lines.
Data sources: LSL New Build House Price Index | ONS, EARN05 – Average weekly gross earnings of full time employees, by region.