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

The Cambridge lifts LTV on expat and holiday let buy-to-let mortgages

The Cambridge Building Society has increased the maximum loan-to-value on two specialist buy-to-let ranges...

Direct authorisation retreats as networks consolidate their grip on advice market

New FCA data points to a widening structural divide between directly authorised firms and...

Early January sees sharp rise in demand for home mover services

Demand for home mover services jumped sharply in the first half of January, with...

Coventry targets energy-efficient buy-to-let with new intermediary range

Coventry for intermediaries has launched a new range of buy-to-let products aimed at landlords...

Brokers urge stronger borrowing education as near-prime demand grows

Brokers are calling for greater investment in financial education after reporting a sharp rise...

Latest publication

Other news

The Cambridge lifts LTV on expat and holiday let buy-to-let mortgages

The Cambridge Building Society has increased the maximum loan-to-value on two specialist buy-to-let ranges...

Direct authorisation retreats as networks consolidate their grip on advice market

New FCA data points to a widening structural divide between directly authorised firms and...

Early January sees sharp rise in demand for home mover services

Demand for home mover services jumped sharply in the first half of January, with...