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House price growth continues

House price growth continues

Category: Mortgages

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

MONEYFACTS ARCHIVE
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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.

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