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Average UK house price hits £250,000

Samantha Cordon
Written By:
Samantha Cordon
Posted:
Updated:
18/02/2014

UK house prices increased by 5.5% in the year to December 2013, taking the average house price to £250,000.

This takes the average asking price of a home to just below the 3% stamp duty threshold.

Properties purchased for £125,001 to £250,000 are subject to 1% stamp duty.

However, people who purchase properties for between £250,001 and £500,000 have to pay 3%.

While house price growth in England led the way with a 5.7% increase, Northern Ireland and Wales followed closely behind both with a rise of 4.8%.

Scotland’s housing market has struggled to keep pace with a rise of 0.5% in house prices last year.

Annual house price increases in England were driven by rises in London (12.3%), the East (4.6%) and the West Midlands (4.3%).

In December 2013 prices paid by first-time buyers were 7.4% higher on average than in December 2012.

For existing owners prices increased by 4.7% for the same period.

Rory Penn, partner of London estate agency VanHan, said: “There is a structural lack of supply, a growing mortgage market and improving consumer confidence all of which are boosting property prices.

“First-time buyers are paying significantly more than they were a year ago and if this trend continues a lack of affordability could start to become an issue.

“For now, however, it’s the best opportunity for first-time buyers to get on the housing ladder for some years with interest rates at historic lows, even if some lenders are starting to increase their longer-term mortgage pricing.”

 

 


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