16 Dec

House prices enjoy strong annual growth

House prices enjoy strong annual growth

New data reveals that house prices in England and Wales have seen the strongest annual growth since 2005.

The latest LSL Property Services/Acadata index shows property prices rose by 11.3 per cent over the 12 months - making the average house worth more than £280,000 for the first time ever.

However, excluding property gains in London and the South East, the annual growth rate would have been 5.7 per cent- highlighting the strong market in the capital and surrounding regions.

"Annual house price growth across England and Wales has more than doubled over the last 12 months, accelerating from 5.4 per cent in November 2013, to 11.3 per cent during the past year," said David Newnes, director of Reeds Rains and Your Move estate agents.

He added: "These figures are spurred on by London and the South East, where the housing recovery has been fast tracked. When these regions are removed from the calculations, a calmer 5.7 per cent annual rise in house prices materialises, the largest divergence on record," he explained.

Mr Newnes also explained that despite a brief period of slowdown in the capital, prices had started to surge again with record prices recorded in desirable areas such as Kensington and Chelsea, and Hammersmith and Fulham.

The data also revealed that house prices in London are now 1.9 per cent higher than in September, although there has been a fall in the number of completed house sales over the last month as the market starts to slow down before Christmas.

Although Mr Newnes explained: "This doesn’t undermine the strength and stability of the growth in activity experienced over the year as a whole in some locations. For instance, completions have jumped 58 per cent in Slough in the last year, propelling an 18.5 per cent increase in average house prices in the area over this time."

The recent changes in stamp duty could also help to encourage more buying and selling activity in the property market over the coming months, especially at the lower value end of the sector as people are attracted by paying less tax.ADNFCR-1222-ID-801766080-ADNFCR

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