House prices soar by 7.6 per cent in 12 months: Average property value now stands at £284,000 as cost hits record high in the East and South West
04-14-2016
- UK house prices increased by 0.4 per cent month-on-month in February
- Average home in the East of England reached a new peak of £317,000
- Typical property value in the South West reached a new record of £263,000
- North East property values are yet to surpass pre-economic downturn peak
By Vicky Shaw, Press Association Personal Finance Correspondent
Property values stood at £284,000 on average across the UK after increasing by 7.6 per cent in the year to February, official figures show.
House prices increased by 0.4 per cent month-on-month in February across the UK and hit new records in the East and South West of England, the Office for National Statistics (ONS) said.
The ONS report said: 'The continuing upward price pressures in the housing market may be a result of a shortage of supply and robust demand.'
Record high: House prices increased by 0.4 per cent month-on-month in February across the UK
The average home in the East of England reached a new peak of £317,000, while the typical property value in the South West reached a new record of £263,000.
The North East is the only English region where property values are yet to surpass their pre-economic downturn peak. The average property price in the North East is £158,000.
House prices in the other English regions, including London, have fallen back from the record levels seen in previous months. London still has by far the highest average house price, at £524,000 - and values there are 9.7 per cent higher than a year earlier.
Annual house price growth is now stronger in the South East and East of England than in London, with these regions recording increases of 11.4 per cent and 10.3 per cent respectively as the housing market recovery has rippled outwards from the capital.
Supply: Confidence is growing among buyers thanks to cheap mortgage rates and falling unemployment, but limited supply will be a problem in the short term
The average house price in the South East was £368,000 in February.
At a country-wide level across England, Wales, Scotland and Northern Ireland, average house prices sat below their previous peaks in February.
Across England, house prices increased by 8.2 per cent annually to reach £298,000 on average. In Wales, property values edged up by 2.8 per cent annually to reach £173,000 typically.
House prices in Northern Ireland increased by 2.4 per cent annually, pushing the average price to £157,000. In Scotland, property values dipped by 0.8 per cent annually, taking the average price there to £189,000.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: 'Cheap mortgage rates, a base rate that doesn't look as though it is rising any time soon, and falling unemployment, are giving buyers more confidence to take the plunge, assuming they can find the property they want to buy.
'Limited supply is likely to be the biggest issue they face in the short term but it may be house price growth which is the bigger issue longer term as it continues to outpace real earnings growth by some margin.'