House prices rise at fastest rate in more than three years
Friday 27 September 2013
House prices rose at their fastest annual pace in more than three years in September as the market revival spread across the UK, Nationwide has reported.
For the first time since 2007, all 13 UK regions have seen annual house price growth, in signs that "the pick-up is becoming increasingly broad-based", the building society said.
The annual rate of house price increases rose to 5% across the country, marking the strongest uplift seen since July 2010. Prices are also up by 0.9% month-on-month, following a 0.7% monthly increase seen in August, meaning the typical UK home is now worth £172,127.
On a regional level, the biggest increases continued to be felt in London, where prices have risen by 10% year-on-year and at £331,338 typically they are not only at an all-time high but are sitting 8% above their 2007 peak.
But the pick-up remains patchy. Manchester also saw a 10% increase in house prices over the last year and Newcastle recorded an 8% rise - but at the other end of the spectrum, prices were down by 3% annually in Carlisle and by 2% in Southampton.
Despite all regions across the UK seeing house price growth, the gap between average property values in the North and those in the South of England has widened to a new high, topping £100,000 for the first time.
A house in the South of England is typically 74% more expensive than one in the North. Prices in southern regions have risen by 6.1% year-on-year and this increase is almost double the rate of the 3.1% rise seen in the North.
Nationwide said that the 10% year-on-year growth in London marks the first time the English capital has seen a double-digit increase since 2010.
East Anglia saw the second highest annual increase in house prices at 6.6%. House prices were up by 3.6% in Wales year-on- year and by 2.2% in Scotland.
Northern Ireland saw its first annual price rise since 2007, albeit a small 0.9% increase, indicating that prices there are starting to stabilise, Nationwide said.
Northern Ireland has the lowest average house prices out of all the regions, at £108,671. The lowest year-on-year price increase was recorded in the North of England, at 0.2%.
Fears have been growing in recent months that Government schemes such as Funding for Lending and Help to Buy, which have widened mortgage availability and encouraged more low-deposit lending, could be helping to stoke up a house price "bubble", with people overstretching themselves.
But these concerns have been dismissed by lenders and by Chancellor George Osborne, who recently said that house prices have "barely grown" outside London.
Nationwide's chief economist Robert Gardner said the acceleration in house price growth from a subdued pace last year has been "surprisingly quick", although prices are still way off their previous peaks in many areas of the UK.
He said: "Overall, UK house prices are still around 8% below their 2007 highs. However, there is still significant regional variation, with prices in Scotland, Wales and the North of England around 12% to 14% below their previous peaks, while in many southern regions prices are 5% to 7% lower.
"Only in London are prices at an all-time high, 8% above their previous peak."
Mr Gardner warned that house building is still running at levels below what is needed to keep up with demand, which will fuel the upward pressure on prices.
He said: "The risk is that if demand continues to run ahead of supply, affordability may become stretched. House price growth has been outstripping average earnings growth since the middle of the year, for the first time since late 2010."
At the moment, "ultra-low" interest rates are helping to support the affordability of mortgage payments, he said. A typical mortgage payment for a first-time buyer is around 29% of their take-home pay, which is in line with the long-term average.
This six-bedroom Georgian home is on three floors with open fireplaces, a two-oven Aga, an annexe, and cottage gardens with outbuildings and a car barn
High Crest House covers an impressive 9384sq ft, with almost three acres of grounds including a tennis court and summer house enclosed by electric gates
A six-bedroom farmhouse with separate accommodation in converted stables. Situated in the village of Church Aston, within walking distance to the market town
A two-bedroom flat with under-heated walnut floors and bespoke built-in storage. The Tube and Clapham Common are a short stroll away
A refurbished seven-bedroom townhouse with staff quarters, cinema room, superb gym, steam room and plunge pool
A minimnalist four-bedroom home designed to the highest spec, featuring glass walls and a kitchen space lit by a glass roof
Hibernate during winter and make your living during the summer at this busy guesthouse with panoramic sea views, in the village of Lynton
A four-bedroom penthouse next to the Tate with direct views of St Paul's from two floors of luxurious living space
A four-bedroom detached home surrounded by spacious gardens and woodland, close to New Pudsey
An 18th-century, three-bedroom home near Langstone Harbour built from ships beams with vaulted ceilings and wood burning stoves
A five-bedroom semi-detached home with a mix of period and modern features in a popular and convenient location
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
A three-bedroom villa with self-contained flat, minutes from Lake Windermere
A deceptively spacious, beautifully presented Georgian home with 3000sq ft of living space and five reception rooms
A five-bedroom Victorian home with four receptions, superb gardens and paddock in Pembury
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
A three-bedroom, 15th-century cottage with original features in the picturesque village of Sissinghurst
A six-bedroom terraced house with large south-facing roof terrace, cinema room and wine cellar
A new seven-bedroom home built in Queen Anne-style with swimming pool and parkland views in Mortimer
A listed, four-bedroom farmhouse in the rural hamlet of Rushall with detached barn, four acres of gardens and paddocks
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
Life & Style blogs
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
- 1 What happens to your body when you give up sugar?
- 2 Licence fee: What is the BBC charge – and how will the changes affect you?
- 3 This is what the photographer has to say about the picture of a weasel riding a woodpecker
- 4 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
£16000 - £46000 per annum: Recruitment Genius: This is an opportunity to join ...
£9 - £13 per hour: Recruitment Genius: This is a great opportunity to join a s...
£25000 - £35000 per annum: Recruitment Genius: Have you got a proven track rec...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...