22 Nov

Property prices rise by 12%

Property prices rise by 12%

New data shows that UK house prices rose by 12.1 per cent in the 12 months to September.

Figures from the Office of National Statistics (ONS) showed annual price increases of 12.5 per cent in England, 5.8 per cent in Wales, 7.6 per cent in Scotland and 10.9 per cent in Northern Ireland.

According to the ONS data, the average home now costs £272,000, with annual prices rising faster than any other year since 2007.

The main factor behind the rise in property values in England was the strong market in London - where prices rose by 18.8 per cent. When excluding London and the South West, UK house prices increased by 9.1 per cent.

There is some possible cooling of the housing market, with just a 0.5 per cent increase seen between August and September 2014.

However, Peter Rollings, chief executive officer of Marsh & Parsons, explained the housing market's future remains upbeat.

"Values have retreated back from peak levels in the majority of regions across the country. London remains the spark plug injecting energy into the overall annual rise in UK house prices, and lively demand to live and work in the capital has always spurred growth on at a faster pace than in other regions," said Mr Rollings.

He added: "Following a slower than normal summer in London, an attractive combination of greater supply of property, excellent lending conditions and more realistic asking prices is attracting good amounts of potential buyers to the market."

Research by Reeds Rains and Your Move estate agents revealed there has been a strong increase in activity, with October reporting the highest level of completed sales in a month since November 2007.

The company explained that the increased level of completions highlights the ongoing recovery from the recession and that activity is now finally shifting to areas that have continued to struggle since the economic downturn.
 
For example, completed house sales in both the West Midlands and East Midlands have risen by 22 per cent, while in the capital house sale completions are up by only three per cent in the same period.ADNFCR-1222-ID-801761800-ADNFCR

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