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ONS: House prices up 9.1pc

Robyn Hall

April 15, 2014

This was primarily driven by the London market, where prices rose by 17.7%, while in the South East they climbed 8.0%.

If London and the South East is taken out of the equation national growth drops from 9.1% to 5.8%.

House prices inflated by 1.9% Between January and February 2014 alone on a seasonally adjusted basis.

Oliver Atkinson, director of online estate agents Urbansalesandlettings.co.uk, said: “Forget talk of house price bubbles. In London, the market is well beyond that. What we’re witnessing in the capital is a superbubble.

“Buying in London is surely now a high stakes game.

“Will the superbubble go pop? The extreme lack of supply in the capital will protect prices to an extent but anyone buying at current levels has to go in with eyes wide open.”

And Nicholas Ayre, managing director of homebuying agency Home Fusion, said: “Confidence is now spreading out to the regions, which is making for a more balanced market. It is not just about London experiencing one thing and the rest of the country something else.

“The market has a 2007 feeling – if you don’t buy now and pay that extortionate price, there is a long queue of people behind you ready to jump in.

“With property prices up 10.5% for first-time buyers compared with a year ago, many people are in danger of being priced out again.”

Annually house prices grew by 9.7% in England, 5.3% in Wales, 2.4% in Scotland and 2.8% in Northern Ireland.

Stephen Smith, director of Legal and General mortgage club and housing, added: “Whilst there has been a lot of commentary around house prices in the capital, policy makers cannot make decisions that will impact the whole country based simply on what is happening in London.

“The government needs to maintain a balancing act between stimulating growth in some areas and ensuring that London and the South East don’t become unaffordable to families.”


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