House Prices Rise 8.8% Year-On-Year

The latest Monthly House Price Index from Nationwide has revealed that house prices rose by 0.7% in January to reach £176,491, a year-on-year rise of 8.8% (up from £162,245 in January 2013) and posting the 13th successive monthly increase. Despite this, average house prices are still around 4% below the peak levels seen in 2007. All regions in the UK saw annual price growth although London continues to lead the way, showing an increase of 15% in Q4 2013. However, figures from the Land Registry’s House Price Index, also released yesterday, reveal a slightly different picture – although this Index also shows that prices are rising, it’s calculated a less significant annual increase of 4.4%. The average house price in December 2013 stood at £167,353, up from £160,291 in December 2012, while also being 1.1% higher than in November. The figures again show that London saw the greatest rate of annual growth, posting a year-on-year increase of 11.2%. The improvements to the housing market are thought to be on the back of increased employment, record low mortgage rates and improved confidence in the sector, however experts warn that with an increase to base rate expected in the future it could mean affordability becomes a burgeoning issue.