House Prices Up 5% As Boom Goes Nationwide
THE recovery in the housing market has finally spread across the whole of the UK.
All regions saw year-on-year price rises this month - the first time this has happened since 2007. In a further sign of economic revival, prices are now rising at their fastest rate for five years, according to the Nationwide building society.
This means the average house is now worth £172,127 - its highest level since 2008. Economist Howard Archer said "The encouraging thing about these figures is that we are starting to see price increases across all areas of the country, not just London and the South-east.
"It's very good news and boosts hopes of an overall improvement in economic activity across all regions.
"We are at a very early stage but the economy is now genuinely looking a lot healthier and there are signs we are seeing a proper recovery after several false dawns."
Manchester saw a 10 per cent increase in prices and Newcastle-upon-Tyne eight per cent. But the gap between average property values in the North and the South has widened to a new high, topping £100,000 for the first time. Houses in the South of England is typically 74 per cent more expensive than one in the North.
Experts predict the housing market will have fully recovered from the credit crunch by the end of next year, with prices increasing a further two per cent this year and then by seven per cent in 2014.
Meanwhile, figures from the Land Registry for August yesterday showed the biggest annual house price rise since November 2010, although this was a comparatively modest 1.3 per cent.
“If this report is right this is obviously good news for the housing market let’s hope it does not change next week” says Greengates Builders Merchants Accrington, Lancashire.