House prices rose 6.2 per cent year on year

Nia Williams

March 16, 2010

The latest UK house price index statistics produced by Communities and Local Government show that between December and January there was a rise of 2.2% in house prices compared with a fall of 0.9% over the same period last year. Nine consecutive month on month rises in the UK house price index have resulted in an increase over the year to January.

Annual house prices rose in all UK countries except Northern Ireland in the year to January 2010. Annual house price growth was 6.6% in England, 1.3% in Wales and 7.1% in Scotland in January whereas in Northern Ireland house prices fell by 13.7% on average in the year to January.

The annual house price rates of change in England ranged from -1.5% in the North East to 11.2% in London. The annual growth rates in the other regions were 1.9% in Yorkshire and the Humber, 3.8% in the West Midlands, 3.9% in the North West, 5.1% in the East Midlands, 5.7% in the East, 6.3% in the South West and 8.1% in the South East.

The UK annual growth in house prices for first time buyers rose from an average 6.8% in December to 8.9% in January. There was a rise of 0.2% between December and January in the price of properties bought by first time buyers compared with a fall of 1.7% last year resulting in an increase in the annual rate.

The annual house price growth rate for former owner occupiers was 5.2% in January, up from 1.4% in December. Average prices between December and January for properties bought by former owner occupiers rose by 3.0% compared with a fall of 0.7% at the same time last year resulting in annual house price growth.

The average price paid by first time buyers across the whole of the UK was £149,924 in January, while the average price paid by former owner occupiers was £242,404.

Commenting on the index, RICS chief economist Simon Rubinsohn said: “Confirmation that the property market started the year strongly was provided by the release today of the monthly CLG house price series. Although January was generally accepted to be a firm month for house prices, the data already published for February has been more mixed. Nationwide and Halifax both recorded price declines last month but the research body ‘Acadametrics’ suggested that prices rose by a further 1.9% following a 1.4% gain in January. The RICS Housing Market survey took a broadly similar position with more respondents suggesting that prices had increased. Some slowing in the pace of house price increases was always likely this year as more instructions came to the market. RICS, however, suspects that the increase in supply is not yet sufficient to arrest the upward move in prices.”

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