"As house prices begin 2017 on an upwards curve, our country’s housing problem continues to worsen."
Average house prices in the UK have increased by 6.2% in the year to January 2017, up from 5.7% in the year to December 2016, according to the latest UK House Price Index from the ONS and Land Registry.
The average UK house price was £218,000 in January 2017. This is £13,000 higher than in January 2016 and £1,000 higher than last month.
However, the January figure remains below the average annual house price growth seen in 2016 of 7.4%.
The main contribution to the increase in UK house prices came from England, where house prices increased by 6.5% over the year to January 2017, with the average price in England now £235,000. Wales saw house prices increase by 4.2% over the last 12 months to stand at £146,000. In Scotland, the average price increased by 4.0% over the year to stand at £142,000. The average price in Northern Ireland currently stands at £125,000, an increase of 5.7% over the last 12 months.
The East of England is the region which showed the highest annual growth, with prices increasing by 9.4% in the year to January 2017. Growth in the South East was second highest at 8.7%, followed by London at 7.3%. The lowest annual growth was in the North East, where prices increased by 2.2% over the year.
Jeremy Duncombe, Director, Legal & General Mortgage Club, commented: “As house prices begin 2017 on an upwards curve, our country’s housing problem continues to worsen. Despite record low interest rates, the latest ONS figures show that average house prices in England & Wales have now reached 7.6 times more than average earnings. This gap is only going to widen if prices continue to follow this trend, preventing many from taking their first steps onto the property ladder."