House prices up 5.2% annually

Published on

housesofmoney

The LSL Property Services/Acadata house price index for January 2014 has revealed that the average price of a home in England & Wales at £241,101, another new record.

The average price has thus increased by £1,384, or 0.6%, during January 2014. Prices have now risen continuously for the last 17 months (leaving aside May 2013 where a minor £70 fall was recorded), although the monthly increases have been relatively small at between 0.0% and 0.8% per month over this period.

On an annual basis house prices have risen by a nominal £12,000, or 5.2%. This percentage increase is 2.5% above December’s 12 month RPI of 2.7%, and Acadata said all the evidence from the Office for Budget Responsibility (OBR) and elsewhere suggests that house prices will continue to remain ahead of inflation in 2014.

David Brown, commercial director of LSL Property Services, said: “The UK housing market is roaring back to life in 2014 as the recovery continues across the board. Prices are now up 5.2% annually, driving the price for the average home to a new high. Mostly this is due to much increased activity, with growing demand for property buoyed by low interest rates and Help to Buy, combined with hot competition for homes. This boost in sales has seen an air of optimism encapsulate the market. While 2013 was a turning point in the recovery, 2014 is set to be a watershed year if the next few months continue in the same vein.

“Last month saw the largest rise in sales over the past year, up 67% annually, with transaction levels crucially only 4% below the January average seen in the decade before the credit crunch. This astounding turnaround can largely be attributed to the resurgence of the first-time buyer. The wide range of attractive mortgage deals on offer, cheaper rates and wider product choice has been pivotal. Such rises in new buyer numbers has encouraged activity further up the ladder and inspired movement among second steppers, which will prove vital in sustaining a healthy rate of sales activity.

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Landbay adds 11 tracker products and cuts rates by up to 15bps

Landbay has expanded its buy-to-let tracker range with 11 new products and reduced rates...

Howden expands in North Wales with Wrexham office

Howden has opened its first commercial insurance office in Wrexham as the broker expands...

UK buyers reluctant to compromise despite affordability pressures

UK homebuyers remain committed to purchasing a property but are less willing than buyers...

Keystone trims buy-to-let fixed rates by up to 15bps

Keystone Property Finance has reduced pricing across a number of its buy-to-let mortgage ranges,...

Saffron expands expat landlord range and eases residential income criteria

Saffron for Intermediaries has broadened its specialist mortgage criteria with new expat HMO products...

Latest publication

Other news

Landbay adds 11 tracker products and cuts rates by up to 15bps

Landbay has expanded its buy-to-let tracker range with 11 new products and reduced rates...

Howden expands in North Wales with Wrexham office

Howden has opened its first commercial insurance office in Wrexham as the broker expands...

UK buyers reluctant to compromise despite affordability pressures

UK homebuyers remain committed to purchasing a property but are less willing than buyers...