Property prices rise at fastest rate for 3 years

UK house prices are rising at their fastest rate for three years, according to the latest data from LSL Property Services.

In November, house prices were up £11,219 from a year ago.

By the end of the 2013 sales are set to be a staggering 16% higher than in 2012.

David Newnes, director of LSL Property Services, owner of Your Move and Reeds Rains estate agents, said: “The housing market is almost unrecognisable from 12 months ago. Not only have average prices climbed to a new record high – with an annual rise of £11,219 and a monthly increase of £1400 – but we’ve seen an increase in every region for the second month running – a true sign that the nationwide recovery is really taking off. The LSL house price index incorporates all transactions including cash.   “Competition is strong through rising demand and supply of new instructions not growing , a factor that will continue to prop up prices in the long term. Confidence is higher throughout the market, with the Help to Buy scheme and record low interest rates contributing to the positivity. Over the second part of this year, consumer confidence has snowballed as the economic picture improves, leading to a significant rise in sales. The increased availability of mortgages, in part thanks to the government’s schemes, and the greater range of mortgage deals on offer has swung open the door to a new host of first-time buyers, making the distant dream of homeownership now a reality for thousands.

“Strong headway is finally being made towards a universal recovery. All ten regions in England & Wales experienced positive movement in prices on an annual basis for the second time in three years. Annually prices have increased in over 80% of local areas up and down the country – the highest percentage since September 2010. The trajectory is clearly upwards. Record high house prices have not only been recorded in the capital, but also in areas of the South East including Oxfordshire, Hertfordshire and Cardiff.

“However, there is still uneven growth in property values across the country. London prices continue to race ahead in a different gear with 9.2% annual growth in the capital vastly outshining the rest of the UK.”

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