House price growth continues - Mortgages - News - Moneyfacts

News

House price growth continues

House price growth continues

Category: Mortgages

Updated: 03/01/2014
First Published: 03/01/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

UK house prices are continuing on their upwards trajectory, with data from Nationwide Building Society finding that house prices rose by 8.4% in the year to December 2013 – with the average price now standing at £175,826.

The Nationwide House Price Index shows that house prices rose by 1.4% in December alone, with the housing market continuing to gain momentum as the year drew to a close. In fact, all thirteen regions of the UK reported annual house price growth for the second quarter running, with the housing recovery now being a national event rather than being restricted to key areas.

However, it's still London and the South East that's leading the way, with London prices being almost 15% higher than they were in December 2012 (the average price of a London property is now a whopping £345,186). Nonetheless, with all areas of the UK reporting positive growth in the previous 12 months, it's positive news for the rest of the country too.

This growth can be largely attributed to the upturn of the economy as a whole, along with record-low interest rates, improved affordability and Government incentives such as Help to Buy giving those with a low deposit easier access to mortgages.

Critics would argue that the rapid rate of house price growth could lead to an unsustainable market, but figures show that the average house price is still 5% below the peak levels seen in 2007 – meaning a housing bubble is still a long way off.

What Next?

Looking for advice? use our new mortgage service

Find the best mortgage deals with our whole of market search

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close