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Madness continues as average house prices reach £256,000

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Madness continues as average house prices reach £256,000

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Published by Max Salsbury for 24dash.com in Housing and also in Finance

Madness continues as average house prices reach 256,000 Madness continues as average house prices reach 256,000

Image: Money Arrow via Shutterstock

The average house price in England and Wales hit £256,883 in 2014's second quarter, up 5.9% on 2013's Q2.

And if you think that's bad, check out prime Central London (PCL) where average prices reached £1,638,456 in 2014's Q2 - a massive 11.29% up on the same period in 2013.

London Central Portfolio's (LCP) figures also reveal that transactions across England and Wales are at their highest level since 2007, with 848,767 sales over the last year, up 30.93% compared with the preceding year.

And good old PCL has also recorded the highest transaction levels since 2007 - 6,546 sales over the last year, up 19.34% compared with the preceding year.

Naomi Heaton, CEO of LCP, specialist fund and asset managers, said: “This suggests that the housing stock is still accessible to the domestic market and that it has been a question of waiting for more positive economic sentiment to stimulate activity. However, with the introduction of mortgage caps and the prospect of interest rises on the horizon, this increased activity may well subside.

With the average property price in England and Wales now firmly over a quarter of a million pounds, LCP believes the government should urgently address the jump up in stamp duty from 1% to 3% at the £250,000 price point.

Ms Heaton said: “This would crucially help open up the market to first time buyers, for whom finding an additional £5,000 of stamp duty may make it impossible to save up for their deposit, at a time when mortgage levels are being capped on lower multiples of salary than before."

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