House prices rise by 2.7% across UK in the last year – but are up a whopping 7.6% in London, official data shows

By Lee Boyce

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Property prices in the 12 months to March 2013 increased by 2.7 per cent, edging up slightly compared to the annual 1.9 per cent rise recorded in February, according to official data.

This means the average house value has jumped from £229,000 to £235,000 over the last year, the Office for National Statistics figures revealed.

England saw three per cent growth while Wales saw prices rise by 1.2 per cent - although these rises were offset slightly by declines of 1.7 per cent in Scotland and two per cent in Northern Ireland.

Steady growth: The ONS figures have shown house prices to be rising in the last 12 motnhs

Steady growth: The ONS figures have shown house prices to be rising in the last 12 motnhs

On a monthly basis, house prices were up 0.4 per cent.

The steady growth was fuelled by impressive figures in London and the South East, which saw prices grow by 7.6 and 3.3 per cent respectively.

Taking London and the South East out of the equation, house prices in the UK nudged up 0.6 per cent in the last year.

 

Howard Archer, economist at IHS Global Insight, said: ‘A strong upward move still seems unlikely given an ongoing challenging and uncertain economic environment despite the recent signs of moderate improvement.’

Giles Hannah, managing director of London estate agency VanHan, says: ‘The national average figures demonstrate a clear divide between London, the home counties and the UK as a whole. 

‘In London house prices are likely to continue on an upwards trend over the next three years with a severe lack of supply of new homes actually ready and completed.’

In April house price figures, Halifax reported that property values edged up 1.1 per cent month-on-month and were up two per cent on a yearly basis.

Nationwide reported that house prices edged down by 0.1 per cent month-on-month but were up 0.9 per cent year-on-year in April.

Figures published yesterday by property website showed that house asking prices were up 10 per cent in five months, in what it described as the strongest start of the year since 2004 in terms of asking prices.

Mortgage lenders report one of strongest months in five years

Mortgage lenders have reported one of their strongest months since 2008 in a sign that Government efforts could be prompting an upturn in the housing market.

The Council of Mortgage Lenders estimates that £12.1billion worth of loans were advanced in April, an increase of 21 per cent compared to the same time last year.

 

The total also represents a four per cent increase compared with March and follows a string of studies indicating that Government initiatives to reinvigorate mortgage borrowing are having an impact.

Bob Pannell, chief economist at CML, said: ‘The true underlying position is that April is likely to have been one of the strongest months for lending activity since late 2008.’

The CML has reported an uplift in first-time buyer activity in recent months, helped by various Government schemes designed to make it easier for people to borrow.

The number of mortgages on the market has increased sharply and lenders have slashed their rates since a Government scheme called Funding for Lending was introduced last August.

The CML's previous figures have shown that first-time buyers accounted for 45 per cent of all house purchase loans in March, up from 43 per cent in February.

However, Bob Pannell added the sharp year-on-year rise recorded by the CML has been ‘flattered’ by a temporary dip in activity this time last year which happened after a stamp duty concession for first-time buyers came to an end.

The comments below have not been moderated.

Paul, thanks for your comments = you still have not 'considered' the true facts, ie the data I gave information on recently. My opinion on HPI rises is just that, opinion, and yours is????? As I have revealed my sources and references (THEIR PUBLISHED DATA) what is yours based on (belief in journalist articles)? Not funny/amusing/hilarious, just facts!!

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Jules , HoChiMinh, United Kingdom, 01/6/2013 06:13 Oh dear now we do a complete 'u' turn in fact none of the HPI reports have clearly stated that HPs are undervalued, so you make it all up and now back peddle by saying its my opinion because you have been caught out and have nowhere to hide. There is nothing wrong with having an opinion but lying and self denial is another and throwing your toys out of your pram just highlights your frustration are getting caught out.. No evidence just made up nonsense now that's an opinion.....Hilarious!

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Paul (Funny man) - 25% is my opinion BASED ON FACTS PUBLISHED, now please do your own research. Who knows one day you might be proud of yourself, leaving no time to hurl pathetic insults at more successful people!!

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Jules, HoChiMinh, United Kingdom, 30/5/2013 08:10 'As I have previously stated, all three HPI provider's consistently show housing is UNDER-VALUED'. Really, can you provide clear cross references to the relevant reports and the sections and page references that clearly say HPs are under valued by anything like over 10%? facts are one thing, opinions another while BS is another, which tune do you fancy dancing to?...Hilarious

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As I have previously stated, all three HPI provider's consistently show housing is UNDER-VALUED. Just watch this space for the next 3-5 years and see property rise (not 'go up', it's rise fellow commentors!!) by a minimum 25%!!

Click to rate     Rating   14

Lovetheuk , London, United Kingdom, 22/5/2013 10:52, 'Elliott wave studies show the housing market to be in a bear cycle and no amount of ramping will change this. If you want to buy into the market and not believe years of evidence based on facts then jump in fill your boots.' #### Elliott wave theory is not normally applied to the housing market, but there's a first for everything. Can you expand on why you think it should be applied to property? And how do you reconcile your claim of 'Elliott wave studies show the housing market to be in a bear cycle' with the graph of house prices in the article? Why do you think that the ONS data is 'ramping'?

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Good news, my sister just made 30 grand on a house and now is moving into a 4 bedroom house because of it. - Dave Davies , derby, United Kingdom, 22/5/2013 10:41---------------------quote----------- excellent news but when she bought her small house that she made 30 grand on the bigger house was 50 Grand cheaper,---its a mugs game your sister has just lost 20 Grand.

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I am the beneficiary of the house-price boom. My children are its victims..

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Lord Humphrey, The edge, 23/5/2013 8:55@@@@@ You are quite safe with that one - there isn't sufficient funding for 5% rises let alone 30%. The FTSE is tumbling already on news that the US Fed are withdrawing their fiscal support to the US economy. June will see a U turn in this speculative madness that is totally unsupported by any real growth!

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Britain is broken, this is just the start of the new boom in property prices, it's not a sign of a healthy society if prices rise by 30 percent over the next 2 years! homeowners will become extremely wealthy but most what about the renters who are struggling with ever soaring rents? There's an unjust imbalance and its getting worse each day!

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