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London house prices more than double the UK average.

House price growth is beginning to increase strongly across parts of the UK, with prices in London increasing at more than double the UK average according to new national house price data from the Office for National Statistics (ONS).

Annual house price increases in England were driven by rises in London (11.6%), the South East (4.5%) and the West Midlands (4.4%).

In the 12 months to November 2013 UK house prices increased by 5.4%, down from a 5.5% increase in the 12 months to October 2013.

The year-on-year increase reflected growth of 5.6% in England, 5.4% in Wales, 2.5% in Scotland and 3.3% in Northern Ireland.

Excluding London and the South East, UK house prices increased by 3.1% in the 12 months to November 2013.

On a seasonally adjusted basis, average house prices increased by 0.5% between October and November 2013.

In November 2013, prices paid by first-time buyers were 6.4% higher on average than in November 2012. For owner-occupiers (existing owners), prices increased by 5.1% for the same period.

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3 thoughts on “London house prices more than double the UK average.

  1. Stuart Law, CEO of Assetz says:

    These latest statistics show that, as predicted, house price growth is picking up away from the capital as the rest of the country fights back. Well established locations in city centres and suburbs, accounting for around 85% of residential property, and where employment is high, will now see strong price growth and this is reflected in these year-on-year price growth figures of over 5% in England and Wales.

    Risks are diminishing away from London and investors and homeowners are coming to the conclusion that the economy is now recovering. Today’s inflation figures dropping back to 2% for the first time in four years will also help boost growing confidence. Rents are not keeping up with house prices and this is good news for tenants. Likewise, investors are once again looking for growth and strong gross yields of around 7% or greater, heading to key cities like Manchester, Liverpool, Birmingham and their suburbs where there are excellent opportunities for investment. Southern investors are broadly unaware of the lucrative yields available in northern markets, at prices that have not yet reflected the price growth of the next cycle.

  2. Paul Smith, CEO of haart says:

    While London house prices maybe increasing at more than double of those in the rest of the country the fact that regions outside the capital are now playing catch-up is highly positive news.

    Other surveys have shown sentiment to be at a high and yet people are hesitating about putting their homes on the market. This could be that lack of stock means lack of choice but surely now is the time to consider moving as prices outside London are moving at a rate close to 6% year-on-year.

    London is another story with annual rises at 11.6%. But we believe this rate will slow in time and we do not predict a bubble developing in London because growing world demand for property here is as strong as ever and underpins the prime areas. This demand is now spreading out – now only to the London boroughs – but to most the regions which are showing a steady and orderly growth.

  3. David Newnes, director of LSL Property Services says:

    As the economy starts to spring back into shape, house prices have bounced back too over the past twelve months. Prices have been moved upwards driven by an increased demand for property, boosting sales in the process. Confidence has been bolstered among banks and buyers alike showing strong headway has been made on the road to recovery – but it’s clear we still have some way to go and we are nowhere near getting an unsustainable house price bubble.

    For many climbing the first rung of the property ladder is no small feat, while – despite an improvement in lending conditions – securing a mortgage can be equally challenging. Putting together the much needed deposit has however been made easier with Help to Buy offering a real helping hand, welcoming in a flurry of new first-time buyers. But with Funding for Lending seeing the chop, the spotlight will be on Help to Buy to keep the momentum going as it takes centre stage in the months ahead.

    However by any measure, it seems that 2014 may well be the year where the recovery really steps up a notch. But to make sure this isn’t held back, it’s crucial that we address the lack of new home building across the country.

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