15th October 2013
UK house prices have hit a record level according to the latest official numbers writes Philip Scott.
The Office for National Statistics (ONS) found that in the 12 months to August 2013, UK house prices increased by 3.8%, up from a 3.3% increase in the 12 months to July 2013,
The average cost of a home is now above its previous January 2008 high.
House price growth remains stable across most of the UK, although prices in London are increasing faster than the UK average.
The year-on-year increase reflected growth of 4.1% in England, 1.1% in Northern Ireland and 1.0% in Wales, offset by a fall of 0.7% in Scotland.
But in August, the UK House Price Index (HPI) surpassed its previous peak in January 2008 (185.5) by 0.3%.
Commenting on the figures Howard Archer chief UK and European economist IHS Global Insight says: “While the strength of house price rises in London is becoming an increasing concern and pushing up the overall national increase in house prices, we are currently a long way off from an overall housing market bubble emerging. Indeed, in many areas house prices are still well below their 2007 peak levels and rising only modestly at the moment.
“The ONS data also indicate that overall house prices in August were only 0.3% above their previous peak in January 2008. Excluding London, house prices overall were still 4.0% below their January 2008 level in August.”