House Prices Reach Record High Of £274,000

Oct 22, 2014

The Office for National Statistics (ONS) has released its data this week, and an article on This is Money reveals some interesting figures. For example, were you aware that house prices grew 11.7% in a year?

The average price of a property reached a record high in August: £274,000. Even when you remove London and the South East from this equation, house values are still up by 7.8%.

Property prices all over the UK increased by 0.6% on a month-by-month basis in August (the equivalent to £2,000), although a slightly weaker increase compared to the 1.6% monthly uptick noted in July.

The average price of a home in England has risen by 12.2% in the last year to reach £285,000; a higher-than-average figure. In Wales this figure stands at 4.7% to reach £172,000, 9.6% in Northern Ireland to reach £143,000 and 6.7% in Scotland to hit the £200,000 mark.

Average house prices in the UK have continued to be bolstered by London and the South East. Excluding these two regions sees property value rise by a more modest, yet still notable, 7.8% over the year.

Growth in the capital city continued to surpass the rest of the UK, with the typical price of a London home soaring by 19.6% over the year to reach £514,000 in August. Prices tipped over the half a million mark for the first time in July.

Other house price indexes go against the ONS data, suggesting that the growth in property prices is beginning to cool, especially in London. This is predominantly down to rate rise speculation, stricter mortgage lending terms and would-be buyers being put off by high asking prices.

Do you think the pace of house price growth is softening, or have these statistics from the ONS made you think otherwise?