Simon Morris, works hard to stay on top of the latest trends in the property market throughout the UK. In this blogpost he looks at the latest statistics released by the Office of National Statistics.
Despite many surveys suggesting that housing stock was dropping slightly in price, the ONS reported this week that house prices had risen 12.1% in a year. This survey makes it clear that we’re still far from a slowdown, although various news outlets have interpreted the figures differently.
Breaking down the stats
The stats are based on the year end to September this year and show an increased year-on-year growth from 11.7% in the previous month. London, the hottest market showed a staggering 18.8% annual rise.
The figures are based on mortgage financed purchases of homes in the UK, with the average house price now being quoted as £272,000. It seems, that prices are now rising faster than at any times since 2007.
Data from the Nationwide and The Halifax suggested house prices had slowed down in the 12 months to end of October, while commentators in the area have suggested that the housing market has reached a natural plateau.
Estate agents Savills said it expected the housing market to be ‘subdued’ in the run up to next year’s General Election.
Regional breakdown of figures
The fastest rising market is no surprise as London property continues to heat up other parts of the UK. The East of England is up 13.4%, while the South East of England is up 11.6%. Slowest growth was seen in Yorkshire and the Humber with a 6% rise.
First time buyers in the UK are paying (on average) 13.3% more than in the same period in 2013. Home owners themselves enjoyed an11.5% price increase over the same period.
Simon Morris is a London-based property expert who uses his specialist knowledge of the commercial property sector, to advise UK property investment funds on how to maximise profitability.
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