fbpx

House prices up 9.6pc

Sarah Davidson

July 11, 2014

The annual growth figures are the highest since July 2010, as prices inflated by £23,443.

On a monthly basis growth has slowed however, cooling to 0.7% in June which amounts to £1,900.

London continued to play the leading role in house price growth, as prices increased by 15.6% annually in the capital.

Indeed, excluding London and the South East prices increased by just 0.1% monthly and 5.2% annually.

Even London is cooling in some areas, as Westminster and the City of London have now seen house prices drop in the last 12 months.

Indeed, four of the top five most expensive London boroughs have seen prices dip below their peak.

Flats, the typical property type for first-time buyers, saw sales increase by 37% year-on-year from March to May 2014.

Richard Sexton, director of e.surv, which is part of LSL Property Services, said: “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.

“The Help to Buy scheme may not be making a difference in London, where prices often exceed the upper eligibility limit, but it is a vital aid for aspiring homebuyers in parts of the country where prices are still regaining ground lost during the recession.

“Places like Lancashire and York are still experiencing annual growth below 1%.”

Average prices in the South East and East Anglia have reached new peaks as Londoners migrate out of the city in search of more affordable homes, while price records were also set in Cambridgeshire, Northamptonshire and Bristol.

Poole in the South West experienced the highest annual growth, as prices inflated by 23.3% in annually.


Sign up to our daily email