House prices continue to increase

House prices continue to increase

A 0.3% increase in UK house prices in June has taken the average house price to £168,941.

According to the latest Nationwide House Price Index prices are up 1.9% from June 2012.

David Pollock, Managing Director at London estate agents Greene & Co., said: “A record property price rise of 5.2% in the second quarter year on year is evidence of growing buyer confidence in the capital as the economy improves and the government’s Funding for Lending Scheme motors ahead.

“Prices are set to continue on their upwards trail this year as limited stock further fuels buyer competition.”

Andy Knee, Chief Executive of LMS, expressed concern about disparity in the market. He said: “The headline figure — that house prices have increased by 0.3% in the last month — implies that this trend has been experienced nationwide but in reality this is far from the case.

“The two-speed house market has never been so evident. While the typical price of a home in the capital is at an all-time high other regions are still struggling to return to levels last experienced during the pre-crisis peak.

“As house prices in the South East continue to climb it is going to become increasingly difficult for people in this area to get their foot on the ladder."

Whilst 10 of the 13 UK regions saw annual price rises in the second quarter of 2013, London prices continued to increase at record rates.

Mark Blackwell, Managing Director of xit2, property data specialists, said of the London situation: "Housing supply is tightening, and with estate agents now having shifted properties that have been on their books for a while, supply pressure on property in London and the South-East is set to increase and prices will rise as a consequence."

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