North East fuels 1.5% house price rise
A resurgent North East drove English and Welsh house prices up 1.5% in a month, according to the Land Registry Index.
House prices jumped 2.7% in the North East between August and September 2013. In annual terms, prices in this region climbed 1.3%.
London and the South East saw the second biggest monthly rise, at 1.9%. The capital also experienced a 9.3% increase in prices year-on-year – more than twice the rise seen in the South East and fifteen times that of the North West. The average price of a house in England and Wales as a whole was £167,063.
Seven out of ten regions saw house prices move upward compared to August. However, the East Midlands and Wales experienced a monthly drop. In annual terms, Welsh house prices fell by 1.7%.
Legal & General Mortgage Club director Jeremy Duncombe said while the price rises were significant, it was important to remember where the market has come from: “A year ago it was beset by lethargy so the impetus created by the various stimulus schemes should not be wished away too quickly.
“It is also worth remembering that Help to Buy is a temporary measure. If the Government needs to change its terms or withdraw it altogether to avoid the market overheating it can do so.
“The main long-term problem is the chronic lack of suitable housing. This constrained supply is the main issue to solve if we are to ensure a stable, balanced and sustainable UK housing market in the future.”
The Land Registry figures come two weeks after the Office for National Statistics published data suggesting the English house prices had risen significantly compared to one year previously.