UK house prices see biggest jump since summer 2010

city-am-image-2House prices rose 6.8 per cent compared with a year earlier – the biggest increase since August 2010 – and up from 5.5 per cent in December, according to figures from the Office for National Statistics. A Bloomberg poll revealed analysts expected a rise of 6.6 per cent.

London led the increase, with prices up 13.2 per cent, followed by the 7.1 per cent rise in the South East.

Excluding London and the South East, prices went up 3.8 per cent over the year. Meanwhile, BBA’s reported mortgage approvals moderated in February but were up 53 per cent year-on-year.

Estate agency VanHan says that property prices are being pushed up by a structural lack of supply, a burgeoning 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.”