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House Prices Rose by 9.1% in February

House Prices Rose by 9.1% in February

The rate at which house prices are rising has continued to increase, according to official figures from the Office for National Statistics (ONS). Purchase prices across the UK climbed by 9.1% in the year to February 2014, the ONS has reported, up from an annual rate of 6.8% in January 2014. The average price of a home in Britain, according to the ONS, now stands at £253,000. The figures are based on sales financed by mortgages and completed during the month.

The ONS added that house prices in February were 3.6% higher than the pre-recession peak in 2008. Prices in London rose by their fastest rate for nearly seven years with the cost of a house in the capital increasing by 17.7% over the year, the highest rate since July 2007. The average price of a home in London has now reached £458,000. The rate of increase in the South East of London was 8%. A lack of supply in London and the south is driving prices higher, experts believe.

Inflation falls to a four-year low

Industry-watchers commented on the rate of increase in London particularly, especially bearing in mind the figures that were also released yesterday showing inflation had fallen to a four-year low. If you would like further information about any residential property matter, speak to a property lawyer.

Excluding London and the South East, UK prices rose by 5.8%. Every region in the UK saw a rise in prices over the year, from 9.7% in England to 2.4% in Scotland, while prices rose by 5.3% in Wales and 2.8% in Northern Ireland. The average combined income of people purchasing their first properties in the UK is now £47,000.

Help to Buy has helped

In response to some critics in the media expressing fears of a house price bubble Kris Hopkins, the housing minister, said: “Our long-term economic plan and efforts to cut the record deficit we inherited mean interest rates remain at a record low making home ownership more affordable. And through schemes like Help to Buy (which allows buyers to put down a deposit of just 5% on a new home) we’re helping people get on the property ladder with a fraction of the deposit they would normally require, with leading developers pledging to build more as a direct result of this increased demand.”

More recent numbers from industry leaders Nationwide and Halifax has showed house price growth moderating in the past couple of months.

Property and conveyancing solicitors based in Chesham

IBB’s team of property solicitors can advise on all aspects of buying, selling and mortgaging property. We are always happy to speak to you about the progress of your sale/purchase on the telephone at any time. For more information or advice from our residential conveyancing solicitors in Buckinghamshire, call us today on 01494 790013 or 01494 790071 or email conveyancing@ibblaw.co.uk​.