20
May
House Price Increases highest since November '07
The annual rate of house price increases reached its highest
level since November 2007, the government's own data shows.
Property prices rose by 9.7% year-on-year in March - the 12th
consecutive month of annual price rises, the Department for
Communities said.
The average value of a UK home rose by 0.7% compared with
February.
London saw the biggest rise in prices over the year, but prices
fell in Northern Ireland.
The cost of the average home reached £205,598 in March,
although the typical sale price for those getting on to the
property ladder was lower.
The average house price paid by first time buyers was
£151,749, 12.6% higher than a year ago, and the average price
paid by former owner occupiers was £238,794, some 8.6% up on
12 months earlier.
National picture
Annual house price growth was 10.1% in England, 7.2% in Scotland
and 8.1% in Wales. In Northern Ireland, prices fell by 6.9% on
average in the year to March.
This put the cost of the typical home at £212,266 in
England, £165,106 in Scotland, £150,648 in Wales and
£174,172 in Northern Ireland.
In the regions of England, annual house price inflation rose in
every area. The largest was in London (15.6%) and the smallest in
the North West (5.1%).
Annual price growth was 11.3% in the South East of England, 9.7%
in the South West, 9% in the West Midlands, 8.4% in the East, 8.3%
in Yorkshire and the Humber, 5.7% in the North East and 5.2% in the
East Midlands.
Despite these rises, many analysts are expecting a rocky year
for the property market.
"The data does not fundamentally change our view that house
prices will struggle to make significant gains over the coming
months," said Howard Archer, chief UK and European economist at IHS
Global Insight.
"Housing market activity has been markedly softer overall so far
in 2010 compared to the latter months of 2009, [and] the economic
fundamentals are still far from robust for the housing
market."