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News: UK property prices climb 6.8%, say ONS

Tue, 25 Mar 14

The Office of National Statistics revealed data to show that property values have risen 6.8 per cent in January 2014 compared to January 2013, up from 5.5% in December.

England led the way, with growth of 7.1%, ahead of Wales (6.9%), Scotland (1.4%) and Northern Ireland (2.7%).

House price growth is increasing strongly across some parts of the UK, with prices in London again showing the highest growth. Indeed, capital property values have risen 13.2%, compared to the West Midlands (5.3%) and South East (7.1%). Excluding London and the South East, UK house prices increased by 3.8% in the 12 months to January 2014.

In January 2014, prices paid by first-time buyers were 7.6% higher on average than in January 2013. Prices paid by existing buyers increased by 6.5% for the same period.

“The property market is rolling ahead on the highway to recovery," comments David Newnes, director of Your Move and Reeds Rains, part of LSL Property Services plc.

"Momentum is growing as lending has increased substantially in the last year – largely thanks to the combination of consumer confidence, an array of attractive mortgage deals and a real willingness on the part of banks to lend to borrowers with smaller deposits.  Pricing is being driven by greater lending availability, positive consumer sentiment as the jobs market continues to improve along with the wider economy. Cheaper rates and increased high LTV lending has encouraged more first-time buyers to invest in property. 
 
“It is welcome news to hear that the vast majority of people using the Government’s HTB schemes are first-time buyers and those outside London, which is playing a significant part in boosting demand across the country.  With this in mind, it’s encouraging to hear that Help to Buy will be extended to help strengthen long term growth in the property market as well as support the construction sector.  Rising demand for housing must be matched with rising supply if the Government is to bring the cost of housing within the reach of first-time buyers. In the context of the cost-of-living crisis which has been central in the latest Budget, building more homes is key so that there is less competition over available property. It’s important to ensure price rises move forward at a steady rate to allow the property market to stay healthy at all levels.”


See also: ONS House Price Index


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