House prices continue London-driven rise

UK house prices jumped 6.8 per cent in January 2014 compared to a year earlier, according to the latest Office for National Statistics figures.

The latest results indicated that house prices grew by just over seven per cent in England, just under seven per cent in Wales, 1.4 per cent in Scotland and 2.7 per cent in Northern Ireland.

Overall annual house price growth in England was driven in particular by rises in London (13.2 per cent), the South East (7.1 per cent) and the West Midlands (5.3 per cent) – excluding London and the South East, UK house prices increased by 3.8 per cent.

Rory Penn, partner at London estate agency VanHan, said: ‘House-price growth continues to accelerate, with parts of the UK performing particularly strongly, but talk of a house price bubble on a national level is still overplayed. Property prices are being boosted by a structural lack of supply, a growing mortgage market and improving consumer confidence. While central London storms ahead, regional house prices will play catch up for a few years as mortgage-financed buyers re-enter the market, taking advantage of the cheap rates available.”