23 Mar

House prices on the rise

House prices on the rise

The start of the year saw house price growth rise during the start of 2017.

Official figures show average property prices increased by 6.2 per cent in the 12 months to January 2017, compared with 5.7 per cent in the year to December 2016.

The average house price in the UK was £218,000 in January 2017 - £13,000 higher than 12 months previously, according to data from the Office of National Statistics.

Increasing values show the market is becoming stronger, but the average annual price growth remains below the 7.4 per cent average.

London continues to have the highest average house price at £491,000, while the lowest average price is £124,000 in the North East.

Jeremy Duncombe, director of the Legal & General Mortgage Club, explained that average house prices in England and Wales are now 7.6 times higher than average earnings, meaning many people are struggling to become property owners.

“This gap is only going to widen if prices continue to follow this trend, preventing many from taking their first steps onto the property ladder. The root of this ongoing problem lies with supply not being able to keep up with demand. To put it simply, we are not building enough homes,” he said.

“Although the government’s recent Housing White Paper promised change, we need to start seeing these promises being delivered against. It is vital we start addressing these problems head on and find a workable solution to this major issue.”ADNFCR-1222-ID-801833842-ADNFCR

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