House prices at highest annual increase in four years
07-13-2014
On a monthly basis, growth has cooled to 0.7 per cent in June, dropping to 0.1 per cent if London and the south east.
By Ruth Gillbe
House prices have seen the highest annual increase in four years, but the rate of growth is slowing, according to the LSL England and Wales house price index.
Average house prices have climbed £23,443 - 9.6 per cent - in the last year, and 5.2 per cent excluding London and the south east, with the average house price now at £268,637.
However, on a monthly basis, growth has cooled to 0.7 per cent in June, dropping to 0.1 per cent without London and the south east.
London house prices are up 15.6 per cent annually, but prices are falling in Westminster and the City.
David Newnes, director of Reeds Rains and Your Move estate agents, owned by LSL Property Services plc, said: “Twelve months of solid house price increases have driven up average property values by a total of £23,443, setting a new record high of £268,637.
“But if you exclude London and the South East from the picture, average house prices across England and Wales have risen a far more sustainable 5.2 per cent over the last year.
“There are also new signs that growth is beginning to slow as we move into summer, and following the changes brought about by the Mortgage Market Review implemented at the end of April.
“The 0.7 per cent monthly change witnessed in June – amounting to £1,900 – is below the average 0.8 per cent increase per month recorded over the last year, as house price inflation starts to moderate.
“With new affordability regulations and stress tests tightening mortgage approvals, the Help to Buy scheme remains a crucial link in bolstering first-time buyer demand and fuelling activity outside of London.
“Flats, the typical property type of first-time buyers making their first step onto the property ladder, have seen the biggest boost in sales across the country. During March to May 2014, sales were up 37 per cent on the same period last year.”