House prices up 10% in a year
Published by Max Salsbury for 24dash.com in Housing and also in Finance
House prices up 10% in a yearImage: Money Arrow via Shutterstock
UK house prices rose by 9.9% in the year to April 2014, the ONS' latest figures have shown.
England saw the biggest increase, where prices rose by 10.4%, while Northern Ireland experienced the smallest rise (2.6%). Wales recorded a 3.3% rise while prices in Scotland increased by 4.8%.
Once again, London showed the highest growth with prices shooting up by 18.7% in the capital, while the South East (8.9%) and the East (8.5%) also drove the national increase. The average house price in London now stands at £485,000.
Excluding London and the South East, UK house prices increased by 6.3% in the 12 months to April.
Responding to the ONS figures, Nicholas Ayre, managing director of buying agency Home Fusion, said: "Although the ONS records further house price rises in April, the numbers lag the marketplace by around six weeks. The market has turned a little since the period the ONS is reflecting and buyers are now taking a breath.
"The upward pressure on prices has subsided as buyers have decided that they won't pay just anything. We are seeing the market correct itself without the need for blunt instruments of intervention from the Bank of England.
"Potential buyers are also paying heed to the never-ending warnings from Mark Carney regarding interest rate rises. Even those clients of mine who are buying for cash and don't need a mortgage are paying attention to the warnings, and taking their foot off the gas a little."
Tom Copley, London Assembly Labour Group's spokesperson for housing, said: “This morning’s figures confirm what we already suspected – that house price inflation in London is dwarfing price rises for the rest of the country. But the disparity between London and the rest of England continues to amaze.
“In an interview this week, Boris Johnson said he thinks that soaring property prices are 'the right problem to have'. With the average house in London now worth £485,000, low and middle incomes Londoners struggling to get on the property ladder would vehemently disagree with this assertion.
“Boris Johnson has utterly failed Londoners on housing over the past six years of his Mayoralty. A key driver for the soaring property market is the fact that he is currently only building a third of the 62,000 new homes we need in London each year to keep pace with our growing city.”