This is the highest average price since April 2012. Average prices underwent a seasonal dip toward the end of 2013 but are now on the up again in February, boosting homeowner equity and leading the way for those downsizing to boost housing supply.
First time buyer property prices did not experience the same seasonal dip but rather have increased at a steady level since December 2013. In February the average price of a first time buyer property is £158,412, up 13.3% annually and 1.1% on the month. This is the highest average price over the last year.
The driving force behind property prices continues to be demand, with new buyers up 32.3% annually and 5.5% on the month. New first time buyers are up 55.4% nationally and 3.6% on the month. In contrast, new properties for sale are only up 10% annually.
The property market remains buoyant with the level of sales transactions up 21.3% annually – this is the greatest level of annual increase on record. Buyer viewings are up 7.7% annually, indicating that prospective buyers are especially busy at the start of spring 2014. UK property prices increase 7.9% annually to £191,375, London 23.6% to £474,359
Paul Smith, CEO of haart, with a network of over 200 branches, comments:
“Home owners across the UK, who have on average accumulated equity of over £14,000 in their property over the past year, are expected to take advantage of their growing assets by remortgaging or downsizing this spring. The downsizers will ease the current shortage of supply which will help to quell rising house prices. The increase in equity is now more than £90,000 annually in London. The UK market is buoyant with property sales up by 21.3% and new buyer registration up 32.3%. First time buyers are undeterred by property price rises and are now at their highest level in London over the past 12 months as banks continue to support lending to this group of buyers.
“The Chancellor’s deaf ear to the myriad of calls from industry to reform Stamp Duty in the Budget is at best disappointing and at worst will perpetuate a dysfunctional housing market. In one fell swoop he could have increased the supply of homes for sale and capped rising house prices helping every level of the housing ladder. Instead he’s turned a blind eye and given nothing to the majority of homebuyers and sellers rather than throwing them a lifebelt.”
