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House price growth increasing

House price growth increasing

Category: Mortgages

Updated: 14/01/2014
First Published: 14/01/2014

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The latest House Price Index from the Office for National Statistics (ONS) provides yet further confirmation that the rate of house price growth is increasing. Prices rose by 5.4% in the 12 months to November 2013, albeit a marginal drop on October's yearly growth figure of 5.5%, putting the average property price at £248,000.

On a monthly basis house prices rose by 0.5% between October and November, with figures indicating that prices are increasing across all parts of the UK. However, as might be expected, there are still regional variations with London continuing to lead the way, with prices increasing at more than double the UK average over the year.

There are distinct variations in terms of buyer type as well. The average first-time buyer, for example, paid 6.4% more for a property than they would have done in November 2012, while for existing owners prices increased by 5.1% over the same period (incidentally, in November 2013 the average price paid by a FTB was £187,000 while for owner-occupiers it was £284,000).

Industry experts are expecting this upwards trend to continue with Help to Buy potentially fuelling further price rises as demand increases, but they've warned that there needs to be a focus on the supply of new housing in order to satisfy that demand and restore the market to full health.

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