UK house prices up 10.5% year on year, latest ONS data shows
UK house prices increased by 10.5% in the year to May 2014, up from 9.9% in the year to April 2014, according to the latest index from the Office of National Statistics (ONS).
House price annual inflation was 11% in England, 6.5% in Wales, 3.6% in Scotland and 0.7% in Northern Ireland, confirming that price growth is now reaching the whole of the nation.
Overall house prices are increasing strongly across most parts of the UK, with prices in London again showing the highest growth. Indeed, annual house price increases in England were driven by a record annual increase in London of 20.1% and to a lesser extent increases in the South East of 9.6% and the East at 8.6%.
Excluding London and the South East, UK house prices increased by 6.4% in the 12 months to May 2014 and on a seasonally adjusted basis, average house prices increased by 0.8% between April and May 2014.
The data also shows that in May 2014, prices paid by first time buyers were 11.3% higher on average than in May 2013. For owner-occupiers prices increased by 10.1% for the same period.
David Newnes, director of Reeds Rains and Your Move estate agents, owned by LSL Property Services, pointed out that the housing market recovery continues to seep across the country beyond the capital.
‘Consumer confidence is travelling further afield, but a balanced view has to be taken as some regions of the country have seen very little house price growth. Places like Lancashire and York are still experiencing annual growth below 1%,’ he explained.
He also pointed out that there are also new signs that growth is beginning to slow. ‘In London prices have begun to fall at the upper end of the market, and the City of Westminster and the City of London have now seen house prices drop in the last 12 months. In four of the top five most expensive London boroughs, average house prices have dipped below their respective peak levels,’ said Newnes.
‘With new affordability regulations and stress tests tightening mortgage approvals, the Help to Buy scheme remains a crucial link in bolstering first time buyer demand and fuelling activity outside of London. Help to Buy may not be making a difference in London, where prices often exceed the upper eligibility limit, but it is a vital aid for aspiring home buyers in parts of the country where prices are still regaining ground lost during the recession,’ he added.
According to Paul Smith, chief executive officer of CEO of haart, the UK’s largest independent estate agent, recent statistics from the same government department show that nine of the 12 regions of the UK are still below their peak in January 2008.
‘This helps keep things in perspective. It’s a positive that house prices are continuing to recover around the UK while London remains a law unto itself, but even here we are seeing prices tail off which is a good thing,’ he said.
‘More stock is coming onto…