UK house prices increased by 9.1% in the year to February 2014, up from 6.8% in the year to January 2014, the Office of National Statistics has reported.

House price annual inflation grew by 9.7% in England, 5.3% in Wales, 2.4% in Scotland and 2.8% in Northern Ireland.

House price growth is increasing strongly across most parts of the UK, with prices in London again showing the highest growth.
Annual house price increases in England were driven by rises in London (17.7%), the South East (8.0%) and the East of England (7.7%).

Excluding London and the South East, UK house prices increased by 5.8% in the 12 months to February 2014. On a seasonally adjusted basis, average house prices increased by 1.9% between January and February 2014.

In February 2014, prices paid by first-time buyers were 10.5% higher on average than in February 2013. For owner-occupiers (existing owners), prices increased by 8.6% for the same period.

Paul Smith, CEO of haart, said: “The definitive ONS house price index shows UK house price increases nudging towards 10% in February with London heading towards 18%. This will create speculation that a bubble is developing, however, while undoubtedly buyer demand is acute and the supply of homes limited we do not feel that this is the case. Across the haart network there are around 30 people per branch who have secured a buyer but can’t find a new home. With wages edging above inflation there will be more disposable income and this should encourage people to trade up and increase the supply.

“While house prices in London may have risen by 17.7% according to ONS, our data shows it’s more like 30% a year. London is another entity and the rest of the country does not reflect these steep rises. However, with greater caution from mortgage lenders and with even stricter loan criteria soon to be introduced the market will settle down to a more orderly position. Sellers must be persuaded that they will receive their asking prices – and if they wait to trade up they will have to pay more.”