House Prices Close in on 2007 Peak
The Nationwide has today reported that house prices are now getting close to the peak of 2007, after the average property price jumped 6pc in the last month.
The figure now stands at £177,846, which is 9.4pc higher than in February 2013, showing signs of aggressive growth.
This data has been derived from the Nationwide’s own House Price Index, and is based around mortgages that have been approved through the building society. This means that these figures do vary quite significantly from other reports, including the Office for National Statistics, who reported that house prices had reached an average of £250,000 back in December.
Property sales are being driven by low interest rates, after the Government introduced the Help to buy scheme in late 2013. As well as this, available properties in some of the most in-demand places, such as London and the South East are numbered, meaning competition is higher and prices are pushed up as a result.
Robert Gardner, chief economist at Nationwide, said: “Demand continues to be supported by record low interest rates, improved credit availability and rising customer confidence thanks to the healthy gains in employment recorded in recent quarters.
“Price growth is being supported by the fact that the supply of housing remains constrained, with housing completions still well below their pre-crisis levels, which was already insufficient to keep up with the pace of household formation”, he continued.
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