Figures released yesterday by the Office of National Statistics show that house prices in Britain have risen by 12.1% in the month of September 2014. Based on mortgage-financed purchases of homes in the UK the figures show an increase of 0.4% on August’s figures and on average first time buyers were paying 13.3% more in September than they were a year ago.
As expected England leads the way accounting for 12.5% of Britain’s housing inflation with Scotland a close second due to a healthy surge in both supply and demand for housing, post referendum result.
As house prices continuing to climb it is no shock that London leads the way with the highest increase. With house prices rising 18.8% in the capital, it remains the driving force behind the countries property price inflation. The East and South East of the country also contributed to the continued momentum of the countries property prices accounting for 25% of the increase.
However even after taking the countries strongest regions out of the equation house prices across the UK still increased by 9.1% over the course of the last 12 months, with the average house price increasing by £28,000.
News that won’t be welcomed by first time buyers keen to get that first foot on the ladder, already paying 13.3% more than they would have this time last year it seems that this is only set to increase. With tighter mortgage restrictions and substantial deposits required more and more Brits are looking to rent or buy abroad when considering that first affordable property purchase.
This said those already lucky enough to be on the UK property ladder will welcome the recent figures. More specifically over ten million UK homeowners that currently have a mortgage. The recovery in property prices has resulted in a boost in housing equity and the increase in property value is giving homeowners more power when renegotiating mortgage deals.
Property Expert Russell Quirk, CEO of online estate agent Emoov.co.uk commented “It’s seems that the predicted big freeze in the UK property market could be more of a frost and looks likely to warm up again by spring.