House prices up 9.8pc

Sarah Davidson

February 17, 2015

In comparison they inflated by 9.9% to November 2014, while on a seasonally adjusted basis prices have increased by 0.7% from November and December.

Stephen Smith, director mortgage club and housing at Legal & General, said: “While homeowners may welcome an increase in their property value, this is not necessarily positive.

“For the market to grow in a sustainable and healthy way, it is important that house prices do not rise too quickly.

“Increases above the rate of inflation stop those on lower incomes and first-time buyers from being able to afford a house.”

First-time buyers are paying more, as the average price paid by first-timers increased by 9.5% annually to December 2014, while for owner-occupiers the figure stands at 9.8%

House price annual inflation was 10.2% in England, 4.0% in Wales, 5.5% in Scotland and 4.9% in Northern Ireland, while overall it stands at 7.4% when London and the South East are excluded.

Smith added: “To ease the pressure on house prices, we need to build more homes.

“Demand still outstrips supply in the UK, particularly in areas such as London and the South East.

“The general election has brought this issue to the top of the political agenda and it will be essential that whoever wins the election makes good on their promises and address the issue.”

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