Saturday, 21 July 2018

Biggest house price rise in three years

HOUSE prices show no sign of slowing down anytime soon, as the market revival continues to spread across the UK.

HOUSE prices show no sign of slowing down anytime soon, as the market revival continues to spread across the UK.

Building society Nationwide reports that prices rose at their fastest annual pace in more than three years in September, with London once again enjoying the biggest jump.

The annual rate of house price increases rose to five per cent, marking the strongest uplift seen since July 2010, while prices are also up by 0.9 per cent month-on-month. It means the typical UK home is now worth £172,127.

Following a subdued pace last year, Nationwide’s chief economist Robert Gardner said the acceleration in house price growth has been “surprisingly quick”.

All 13 UK regions have seen annual house price growth for the first time since 2007, although prices are still way off their previous peaks in many areas.

This is not the case in London, however, with the average house price in the capital now at an all-time high of £331,338 — a massive eight per cent above their 2007 peak — thanks to a significant year-on-year rise of 10 per cent.

Manchester also saw a 10 per cent increase and Newcastle recorded an eight per cent rise. But, at the other end of the spectrum, residential property prices were down by three per cent annually in Carlisle and by two per cent in Southampton.

Despite all regions across the UK seeing house price growth, the gap between average property values in the north and those in the south of England has widened to a new high, topping £100,000 for the first time ever.

Prices in southern regions have risen by 6.1 per cent year-on-year, almost double the rate of the 3.1 per cent rise seen in the north, with the typical house price in the south of England now standing 74 per cent above its Northern equivalent.

Much has been made of house prices in recent months, with fears that Government schemes such as Funding for Lending and Help to Buy could be helping to stoke up a house price bubble. But these concerns have been dismissed by lenders and by Chancellor George Osborne, who recently said that house prices have “barely grown” outside London.

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