Average UK house price hits record high of £186,512
The accelerating property boom pushed the average house price up to a record £186,512 in May, according to the UK’s biggest building society.
Nationwide said prices rose by 11.1 per cent over the past 12 months. The increase from £167,912 in May 2013 works out at £1,550 each month.
The last peak recorded by the Nationwide was £186,044 in October 2007.
James Hall, director of estate agents, Fishneedwater, said: “With mortgage rates as low as they are and consumer confidence so high, the property market now has an implacable momentum.”
He said 2008 and 2009, when house prices fell by up to 16 per cent, now felt “like they were in another century”.
Mr Hall added: “After Monday’s report from the Bank of England, it’s now pretty clear that the Mortgage Market Review has impacted the number of mortgage approvals. Whether this is a blip or the beginning of a trend is too early to say.”
The May jump, measured on an annual basis, compared with a 10.9 per cent rise in April. On a monthly basis, prices rose 0.7 per cent in May.
The rapid rises run counter to other indicators that have suggested the market is cooling slightly. On Monday, the Bank of England said the number of mortgage approvals had fallen for the third successive month, and stood 17 per cent lower than in January.
Robert Gardner, chief economist at Nationwide, said while there had been “tentative signs” of the market moderating, “it is too early to say whether nationally this is indicative of a cooling trend in the wider market”.
Source: http://www.express.co.uk/news/property/480082/Property-boom-causes-average-UK-house-price-hits-record-high-of-186-512
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