News

UK property prices the highest since records began following surge

The UK property market has surpassed the £200,000 barrier for the first time in June, since records began in 1983. This was following an unexpected surge of 1.7% in monthly house prices, according to Halifax.

This is the fourth consecutive rise, which has now totalled 3.3% over that time. The average UK property price is now £200,280 [1].

The sudden sharp increase in June has resulted in a marked increase rate of inflation. This puts annual house growth back up to where it was in September 2014 and 9.6% higher than compared to a year ago.

Using their own data, Halifax also determined that the average house prices per square metre had risen by 18% since 2010, with prices in Greater London seeing the fastest growth [2].

In contrast, Nationwide has said house prices have dipped by 0.2% in June, bringing the annual rate of growth to its lowest level in two years [1].

Also, according to a bulletin by the Office for National Statistics (ONS), in the year to May, prices rose by 5.5%, which was the slowest annual price growth since December 2013 [3].

Jonathan Samuels, Chief Executive of Dragonfly Property Finance, said that a surge or lull in prices was almost certainly due to the general election result [1].

These figures are based on the values of mortgages the lenders have approved but not including cash sales.

[1].The Guardian. ‘Average UK property price breaks £200,000 barrier, says Halifax’. http://www.theguardian.com/money
[2] BBC News. ‘House prices up 1.7% in June, Halifax says’. http://www.bbc.co.uk/news/
[3] City AM. ‘London house prices: Growth in the capital slowest to lowest rate since 2012’. http://www.cityam.com