House prices continued to soar in January, with their annual rate of inflation leaping to almost 7%, according to official figures published on Tuesday. The average cost of a UK home rose to £254,000, the Office for National Statistics said.
Growing demand from buyers – fuelled by government schemes to help borrowers and increasing confidence in the economy – and a continued shortage of properties for sale are driving rises in all parts of the UK. The average house price in January was 6.8% higher than a year earlier, up from a 5.5% increase in December.
But the average masks wide regional discrepancies.
Growth is still being driven by London and the south-east, which saw annual growth of 13.2% and 7.1% respectively, pushing prices to above their 2008 peaks. In the capital, the average price rose to £458,000 – three times the £147,000 recorded in the north-east of England. If sales in London and the south-east were excluded from the overall picture, the rate of house price inflation across the UK would drop to 3.8%.
In England and Wales, prices rose by 7.1% and 6.9% year on year respectively, while in Scotland values were up just 1.4%.
via The Guardian
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.