UK house prices increased by 11.7 per cent in the year to July 2014, led by growth in London and the South East, according to Office for National Statistics data.
The ONS revealed that this was a 1.5 percentage point increase on June’s figure, which had reported a 10.2 per cent increase year on year.
The performance of the housing market varied across the UK, with annual price increases of 19.1 per cent in London, 12.2 per cent in the South East and 10.6 per cent in the East. Excluding London and the South East, prices rose 7.9 per cent.
David Beckett, author of a separate, 23-page ONS report, Trends in the UK Housing Market 2014, said: “The lower level of house building may have had an effect on the average price of houses.
“Prices have continued on a long-term upward trend but have seen large fluctuations, both at a UK and regional level.
“Rental prices are increasing at a slower rate than house prices, however there is notable regional variation in these figures, with London increasing at the fastest rate, and the North East of England increasing most slowly.”
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “For a healthy, sustainable housing market, house price increases need to roughly match the rate of inflation.”
Brian Murphy, head of lending for the Mortgage Advice Bureau, said price rises had been cast as a “villain”, but could be positive: “For many, a significant rise in their home’s value can secure a better mortgage deal.”
| Region | House price increase for the year to July 2014 (ONS figures) |
| UK | 11.7% |
| England | 12% |
| Wales | 7.4% |
| Scotland | 7.6% |
| Northern Ireland | 4.5% |
| North East | 9.5% |
| North West | 7.7% |
| York and the Humber | 5% |
| East Midlands | 7.6% |
| West Midlands | 7.3% |
| East | 10.6% |
| London | 19.1% |
| South East | 12.2% |
| South West | 7.1% |
Adviser view
Jonathan Harris, director of London-based Anderson Harris, said: “More lenders are cutting their fixed-rate mortgages in response to falling swap rates and with one eye on year-end targets.
“Borrowers still willing to make a move regardless will find some very competitive deals.”
