-In the 12 months to August 2012 UK house prices increased
by 1.8 per cent, down from a 2.0 per cent increase in the 12 months to
July. House prices remain relatively stable across most of the UK,
although prices in London continue to increase, whilst Northern Ireland
prices are falling
-The year-on-year increase reflected growth of
2.1 per cent in England, 0.5 per cent in Scotland and 1.4 per cent in
Wales, which were offset by a decline of 12.8 per cent in Northern
Ireland
-Annual house price increases in England were driven by a
6.3 per cent rise in London and increases in the South East and West
Midlands of 2.4 and 1.2 per cent respectively. Annual house prices
decreased by 0.7 per cent in the South West and by 0.5 per cent in both
the East Midlands, and Yorkshire and the Humber
-On a seasonally adjusted basis, UK house prices rose by 0.1 per cent between July and August
-Prices
of new dwellings rose by 3.0 per cent during the 12 months to August
2012, while the price of pre-owned dwellings increased by 1.7 per cent
in the same period
-In August 2012, prices paid by first-time
buyers were 2.9 per cent higher on average than in August 2011. For
owner-occupiers (existing owners) prices increased by 1.4 per cent for
the same period
David Brown, commercial director of LSL Property Services, comments:
“The
annual growth in house prices has been steadying in recent months as
the sluggish mortgage market places the brakes on the wider housing
market. Any real upwards momentum in prices is being driven by cash
investors and those with the most equity, and its no surprise that the
biggest annual growth is centered on London, where there are simply
larger concentrations of cash-rich purchasers.
It’s still early
days to see whether the Funding for Lending scheme will inject much
needed activity into the mortgage market and significantly boost the
number of new buyers able to scure mortgages across the UK, but
prospective buyers should take comfort from falling inflation. Inflation
is at its lowest in nearly three years, a fact that should make a
difference to those renters setting aside money each month for a
deposit.”
