The struggling UK sales market has propelled the nation ten places down the global house price index list, Knight Frank has revealed, and has been overtaken by a list of countries unknown previously for their perky housing markets.
These include Slovenia, Greece, Peru, Iceland, Chile, Romania, Bulgaria, Estonia, Slovakia, Colombia, Hungary and Latvia, all of which have seen more promising house price growth than the UK over the past 12 months.
Two years ago the UK’s homes were increasing in price on average by 4.1% per annum, placing the nation at No.35 within the top 55 but since then the UK’s housing market has become increasingly subdued.
The latest Knight Frank report reveals that slowing house price increases in the UK have helped the nation slip to 45th place with an annual inflation rate of 1.4%.
This places us some way behind even Greece where house prices have increased by 2.4% despite its debt-ridden economy.
Spare a thought for Australia. As Purplebricks found out to its cost, the property market there is in freefall and house prices are currently winding down by 5.5% a year, placing Oz last in the Knight Frank list.
The country with the highest house price growth is Slovenia which is enjoying an incredible boom.
Kate Everett-Allen, Partner (left), International Residential Research at Knight Frank says: “Slovenia is home to the world’s fastest rising house prices with average values accelerating 18.2% year-on-year.
“Falling unemployment, low interest rates and until recently, limited supply are behind the strong price growth.”