UK House Inflation Reaches 10.5%

Annual house price inflation hit 10.5% in May, the highest rate for four years, according to the Office for National Statistics (ONS).

That is up from 9.9% in the previous month.

Once again, the market was in large part driven by London, where house prices rose by a record 20.1% over the year.

But excluding London and the South East, prices rose by a much more modest 6.4% across the UK.

Prices were up in every region, except for Northern Ireland, where they fell by 0.7%.

In England, prices rose by 11%, in Wales prices were up by 6.5%, and in Scotland they rose by 3.6%.

According to the ONS index, the average price of a house across the UK is now £262,000.

“Annual house price growth of 20.1% is borderline insane, but there are signs that the capital started to cool slightly in June and July,” said Jonathan Samuels, the chief executive of Dragonfly Property Finance.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza