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House prices climb 5%

House prices climb 5%

Category: Mortgages

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

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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 It is now over 6 months old so the content may be out of date.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.

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