Average house price increase

Posted: 08 Aug 2006 11:30:36 GMT

            Property News - Average house price increase

Latest figures from the Land Registry reveal that the average house price in the UK is now just short of £200,000 with a figure of £199,184.

House prices are now 7.71 per cent higher than they were during the same period last year when the average price was £184, 924 and the annual increase stood at 5.43 per cent.

The Land Registry's figures were taken from April to June 2006 and reflect the buoyancy and health of the UK housing market. Sales in England and Wales were up by 23.76 per cent compared with the same period in 2005.

Greater London continued to show increased growth both in house prices and in sales, with the latter showing a 26.69 per cent increase. In total during the period studied 33,254 houses were sold in London and the number of homes selling for more than £1 million also increased.

This latest set of figures comes in the wake of research from Your Move highlighting the gap between supply and demand. More people are looking to buy than sell, thus the market continues to demonstrate good growth that could see continuation despite an interest rate rise.

Commenting on the housing shortage, Peter Bolton King chief executive of the National Association of Estate Agents (NAEA), stated: "Last year there was quite a lack of confidence that came over from the previous year. Then people realised the crash was not going to happen, they were reassured that interest rates were not going to go up and they piled back in."

Overall 1,246 properties sold for over £1 million in 2006 compared to 718 in 2005. It appears that the property market will continue to attract buyers prepared to pay increased prices and even higher mortgage rates; in order to get on the property ladder and reap the benefits of continued growth.

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