Rocketing house prices predicted to hit 2007 high by property experts

HOUSE prices are only £1,200 off their 2007 peak as the market speeds into its busiest season, official figures showed yesterday. By Sarah O'Grady

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Average values grew 0.9 per cent between March and April to reach £179,817 in England and Wales.

In November 2007 they peaked at £181,014, according to the Land Registry. The 5.1 per cent annual rise is expected to accelerate as the property market heads into the traditionally frantic months of July and August.

Now property experts have increased their predictions of how high prices are likely to go this year.

Howard Archer, chief economist at IHS Global Insight, said: “We have lifted our forecast house price increase in 2015 to six per cent from five per cent.” Impact on prices had come from a lack of properties on the market and “reduced uncertainty following the decisive general election result”, he said.

London experienced the greatest increase in values over the past 12 months, with prices up an average of 10.9 per cent. The North-east was the only region to see prices fall with a drop of 0.6 per cent.

At a local level, the biggest boom in prices was recorded in Slough where values in the Berkshire town have risen 13.7 per cent in the past year to reach £203,325. Yorkshire and the Humber recorded the largest monthly rise, with prices up 2.7 per cent.