UK House Price Increase Rises by 2.6% in a Month
Wed 20 May 2015
One of the Londons biggest property sales of the year so far completed a few weeks before
This is up from the equivalent figure for last month, which stood at 7.4%, and is thought to be driven by, amongstother things, an increasing lack of houses available on the market - all of this when such acceleration wasbelieved to slow around the time of last months general election campaign.
The fastest acceleration in the UK was seen in Scotland, where house prices inflated by 14.6% - the fastestgrowth seen in the nation for 8 years.The ONS reported London and the South East of England both saw rises of11.2%, just 0.2% lower than the 11.4% rise in the East of the country.
This increase comes somewhat unexpectedly given the aforementioned election and the tension felt during thecampaign by sellers and lenders wary of potential changes to the market based on mansion tax amongst other
These sentiments were reinforced by the CEO of Marsh and Parsons, Peter Rollings, who has also predictedincreased activity in the high-end housing market.The highest and lowest average house prices are still inLondon (498,000) and Northern Ireland (145,000) respectively, with the overall average price in the UKstanding at 273,000 as of March - up 4,000 from the previous month.
House prices in the South West, South East, East and West Midlands and the East of the UK are all now atrecord highs, with London still sitting quietly behind the staggering highs reached in August last year.
The increase in house prices acceleration coincides with what the Council of Mortgage Lenders (CML) reportedas an 11% decrease in first-time buyers taking out home loans in the first quarter of the year to 61,3.