House prices climb 5% - Mortgages - News - Moneyfacts


House prices climb 5%

House prices climb 5%

Category: Mortgages

Updated: 27/09/2013
First Published: 27/09/2013

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 It is now over 6 months old so the content may be out of date.

Nationwide Building Society's latest figures reveal house prices climbed 5% in September when compared to a year previously.

This brings the price of the average UK home to £172,127 – 0.9% higher than August 2013's figure.

For the first time since 2007, all 13 UK regions experienced price growth in the third quarter of 2013.

The North / South house price gap has continued to widen, however, with the difference in prices reaching a new high of over £100,000 in the third quarter. This means the typical property price in the South of England is now 74% higher than its Northern equivalent.

The news comes as the Bank of England (BoE) announced it will be keeping a watchful eye on the property market following concerns that the second part of the Government's Help to Buy scheme - due to be launched in January - risks artificially inflating house prices by creating demand for housing that far outstrips supply.

From next September, the BoE's Financial Policy Committee (FPC) will conduct annual reviews of Help to Buy in order to assess its impact on house prices.

The FPC will also be able to adjust parts of the scheme to keep it in check.

Yet Nationwide's data shows that UK house prices are still 8% below pre-crisis levels, with London the only area where record growth has seen average prices rise 8% above the peak levels reached in 2007.

What Next?

Compare the best mortgage deals

Speak to an impartial mortgage adviser

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 Any products featured may be withdrawn by their provider or changed at any time.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

85% of remortgagors benefit from lower rates

Mortgage rates are among the lowest ever recorded, and in the case of fixed rates, they just keep falling! This means it’s never been cheaper to fix your mortgage rate for the long term, and unsurprisingly, remortgagors are taking advantage.

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.