UK House Prices Rise 7 Percent in January

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

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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