Overcast

Overcast

max temp: 9°C

min temp: 5°C

ESTD 1874 Search

UK: House prices surge to record high

13:00 18 February 2014

The residential property market is on the rise - but London house prices are largely fuelling the upturn.

The residential property market is on the rise - but London house prices are largely fuelling the upturn.

Archant

House prices have surged to another record high and now stand at one quarter of a million pounds on average, official figures show.

shares
Growing real estate salesGrowing real estate sales

Property values rose by 5.5% across 2013 to reach £250,000 in December, with price growth “beginning to increase strongly across parts of the UK”, the Office for National Statistics (ONS) said.

In England, the house price index for the South East and the East is now above its pre-financial crisis peak, by 1.9% and 1.4% respectively.

Prices in the South East have lifted to £306,000 on average, while in the East of England they are at £263,000 typically.

Price rises in London are still responsible for a “large part” of the upswing in values, the ONS said. London saw a 12.3% increase in house prices in the year to December pushing prices to £450,000 typically, which is one fifth (20.3%) higher than their pre-financial crisis peak in the capital in 2008.

The house price index across the UK surpassed a previous record high reached in November. On a monthly basis, prices rose by 0.9% between November and December.

Charity Shelter warned that the landmark figures are evidence that prices are “spiralling out of control”.

The ONS data showed that in England, house prices rose by 5.7% over the year to reach £260,000 on average. In both Wales and Northern Ireland they are up by 4.8% annually.

The average house price in Wales is £167,000, while in Northern Ireland, which saw some particularly strong price falls after the economic downturn, values have climbed to £135,000 typically.

Meanwhile, Scotland has seen prices lift by 0.5% over 2013 to reach £182,000 on average.

The figures also show that the average first-time buyer is paying 7.4% more for a home than they were a year ago.

In December, the typical price paid by someone getting on the property ladder was £189,000.

Home-movers are paying 4.7% more than they were in December 2012. The average price paid by an existing home-owner has risen to £286,000.

Campbell Robb, Shelter’s chief executive, said: “Yet again, the Government’s own figures show that house prices are still spiralling out of control.

“Until we build enough homes to keep house prices stable, more young people and families desperate to put down roots will see a home of their own become a distant dream.

“Schemes like Help to Buy are only making the problem worse by inflating house prices further. To give the next generation a fighting chance, the Government needs to get serious about building more affordable homes now.”

The ONS said that if London and the South East were taken out of the figures, UK house prices would have increased at a lower rate of 3.1% over the year to December to reach £195,000 on average.

The Government’s flagship Help to Buy scheme, which was launched last year, has significantly widened the availability of mortgages for people with deposits as low as 5% and has helped to pave the way for more loans to be handed out to first-time buyers 2013 than in any other year since the economic downturn.

But some experts argue that, while the scheme has helped to boost the supply of potential home-buyers, more should be done to increase the supply of properties on the market, which could help to calm house prices in some areas.

Concerns have been raised that rising prices could be making some first-time buyers feel under pressure to jump on the property ladder, which could put them in danger of over-stretching their finances.

Housing Minister Kris Hopkins said: “These figures show that the housing market is in robust health, thanks to the Government’s actions taken to keep interest rates down and our initiatives to help people get onto the housing ladder through schemes like Help to Buy and Right to Buy.

“We have kick-started house-building, with registrations of new-build homes the highest in London since records began 26 years ago, and the highest for seven years across England as a whole.

“Our affordable housing programme is investing almost £20 billion in homes for those on lower incomes too, to ensure all hard-working people benefit from the economic recovery.”

shares

0 comments

Armed robbery in Sudbury

A man has been arrested following an armed robbery at a shop in Ballingdon Street in Sudbury this afternoon.

The land on Church Lane, Claydon.

Proposals for a travellers’ site to the edge of a Suffolk village have been refused by the planning authority.

Essex Police escort a delegation from the Saudi embassy during a visit to Salary Brook in Greenstead, Colchester, to see the scene where Nahid Almanea was killed last June.

Detectives investigating the murder of Nahid Almanea met with officials from the Kingdom Saudi Arabia (KSA) in Colchester today.

Shirley Ison may have made a fatal error which caused her car to collide with a tree

Driver error is believed to be the cause of a road accident in which a woman was killed, it was ruled this week.

Easter fun at Kesgrave Library. Tabitha and Sebastion Degiorgio.

Eggs – chocolate and real ones – were on everyone’s minds as a library held a family event to mark the Easter season.

Extra trains for ITFC Fans

Extra train services have been arranged for Ipswich Town fans on Good Friday.

Hagon pleaded guilty to a charge of causing serious injury by dangerous driving and was sentenced at Chelmsford Crown Court on Tuesday, March 31 to two years and eight months imprisonment and disqualified from driving for five years, after which he must take an extended test, Essex Police said.

A driver has been jailed for two years and eight months following a serious collision in High Garrett, near Braintree.

Planners have refused homes on vacant land at Felixstowe's Haven Exchange site.

Proposals for 61 homes near the Port of Felixstowe have been refused because of the need to keep as much employment land available as possible.

Chelmsford Crown Court

A woman has been left permanently disabled after a driver who had taken a cocktail of drink and drugs smashed into her car.

Roger Mortimore (L to R) Mike King, Dave Fryer and Fred Reavie at the Felixstowe School's reunion.

Old school pals enjoyed an evening of fun and laughter as they looked back to their days in the playground and classroom in the late 1950s and 1960s.

Most read

Most commented

Topic pages