Recent figures from Nationwide Building Society revealed an 8.4% rise in house prices in 2013, indicating a monthly rise of £1,131 in the value of the average property.
The report, which has prompted further claims of a housing bubble in the UK, showed that the average property price rose from £162,245 to £175,826, a total increase of £13,851 over the course of 2013. The upsurge in value equates to average gains of £1,131 per month, or £37 per day.
Nationwide found that the surge in house values was significantly higher in London, where the average house price increased by £44,825 over the year, from £300,361 to £345,186, making monthly gains of £3,735 for homeowners in this region.
Although the boost in house prices was largely focused on the south-east region, there was also evidence that recovery has begun spreading out to other regions. In Yorkshire & Humberside, there was a 7.5% increase in the average house price, which rose from £131,046 to £140,864.
In comparison, this was only 0.1% less than the South East region, where property prices increased by 7.6%, with average values rising by £14,998 from £198,009 to £213,007.
However, it would appear that some areas the recovery had not picked up as rapidly in other areas. In the North, the increase was significantly lower, with the average house price rising just 1.9% from £114,264 to £116,417.
In a similar report released this week, contractor mortgage lender Halifax stated that economic recovery and the Help to Buy scheme have both contributed to the rapid uplift in property prices over 2013, which has soared ahead of predictions despite a 0.6% drop in December.
Commenting on the likelihood of a boost continuing in 2014, Martin Ellis, Halifax’s housing Economist, stated that there were "Mounting signs that the economic recovery is becoming firmly established, together with a predicted decline in unemployment, [which] should further boost consumer confidence over the coming months.”
Ellis predicted that heightened consumer confidence should continue to support housing demand this year, further aiding the recovery of the UK property market.
Halifax predicted that house prices will continue to increase in 2014, with growth projections of between 4% and 8% over the year. However, Ellis cautioned that house prices may be dampened as a result of continued financial pressure on households, and an increase in the number of properties on the market.
Although homeowners are expected to continue to benefit from uplift in value this year, Ellis advised that the pressure on price may ease up as more properties come onto the market, stating “Our consumer confidence research shows that there has been a significant improvement in sentiment towards selling in recent months. These factors should help to curb the upward pressure on prices."
Article By: Jon Sheilds, Media Executive at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
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