UK house prices see growth for fourteenth month in a row
UK house prices increased by 1% in June and were 11.8% higher than June 2013 meaning that they have now surpassed their 2007 peak, according to the latest data from the Nationwide Building Society.
All regions saw annual price gains in the second quarter of the year but the south of England, and London in particular continues to outperform other parts of the country, the data also shows.
It means that the average price for a home is now £188,903 and prices have now increased for 14 months in a row. In London prices were up by almost 26% in the second quarter of the year compared to the same period in 2013 and the price of a typical property in the city reached £400,000 for the first time.
Scotland was the weakest performing region with prices up 5.4% compared to the second quarter of 2013 while Northern Ireland is the least expensive region. The average price in Scotland reached £141,872 and £117,140 in Northern Ireland.
After London the South East saw the biggest quarterly change with prices up by 4.1% to an average of £230,409, followed by the South West with an increase of 2.6% to £207,420 and then East Anglia with growth of 2.5% taking the typical home price to £188,960.
The North saw a 2.3% quarterly increase to an average of £125,125, the West Midlands 1.9% to an average of £160,383, Wales 1.8% to £145,812, the East Midlands 1.7% to £154,145, the North West 1.3% to £144,851, and Yorkshire and Humberside 0.8% to £142,661.
On an annual basis prices in London have increased by 25.8%, in the South East by 14%, in the South West by 9.8%, in East Anglia 9.5%, in Wales 9.3%, in Northern Ireland by 8.4%, in the East Midlands by 8.3%, the West Midlands 8.2%, the North 8.1%, the North West 7.1%, Yorkshire and Humberside 7% and Scotland 5.4%.
Southern Scotland, which includes Ayrshire and the Borders, was the best performing area, with prices up 14% on the previous year. Fife was the weakest performing area, recording a 3% year on year increase.
In Wales, the west of the southern half of the country, which includes The Vale of Glamorgan, Bridgend and Swansea, was the best performing area, with prices up 12% year on year. North Wales was again the weakest performing area, with more modest growth of 5% over the same period.
In Northern Ireland prices remain around 50% below their 2007 peak. Belfast remains the most expensive area, and was also the strongest performer over the last 12 months, recording a 14% increase. Prices in the South of England were up 17.4% year on year, whilst in the North they rose by 7.7%. As a result, prices in all of the southern regions are now above their 2007 peak, whilst those in the north remain somewhat below.
But the annual pace of growth in London will probably start to slow in the quarters ahead, given the high base for comparison…