UK house prices continue to climb

UK house prices continue to climb

House prices across the UK have continued their rise, with an average increase of £7,500 on property values over the past year. This is according to the latest figures to be released by the Land Registry.

Despite the good news for homeowners throughout the UK, London was the only region not to share in it. The capital recorded its first annual price drop since the financial crisis, with a one per cent fall in values. Nevertheless, London remained the most expensive region, with the average home price more than double that of the UK average.

The UK average, at £225,000, is currently 4.4 per cent higher than it was a year ago and the West Midlands is leading the surge in growth, with prices rising 7.3 per cent since the same time in 2017. This was followed by neighbouring East Midlands with a 6.3 per cent increase.

Meanwhile, the East of England underwent a four per cent increase in property prices, taking the average to £288,468.

Commenting on the latest set of figures, an economist at PwC said: “We broadly expect current market conditions to continue, projecting UK-wide house price inflation to be around four per cent in 2018.”

Elsewhere, Alan Collett, a fund manager for Hearthstone Investments, explained why he thought regional rises would persist: “We expect house price growth in these areas to continue, despite Brexit uncertainty and possible interest rate rises, because, unlike in parts of London and the South East, average earnings have kept pace with house prices in these areas, so property is more affordable for average buyers.”