London house prices leapt 12% on October 2012. Across England, house prices jumped 5.7%, while Wales and Scotland both saw growth of more than 2%. Northern Irish house prices experienced the highest year-on-year growth since January 2008, at 4.8%.
LMS chief executive Andy Knee said the property market is starting to accelerate: “Surging values are still being driven by the buoyancy of the market in London.
“However, with peoples’ appetite for property growing and demand for homes increasing, there is increasing pressure on the already limited supply of houses across the UK. The drastic shortage of homes will need to be addressed by the Government to prevent prices rising beyond reach.
“The steadfast climb we’ve seen throughout 2013 is set to continue into the New Year, with lending levels, driven by the array of accessible rates on offer, almost certain to follow suit.”
However, the introduction of additional regulations in April, as well as a possible rise in interest rates, could slow momentum down, he added.
Prices for first-time buyer homes increased most rapidly, with first-time buyers paying 5.9% more than they did in October 2012. For owner-occupiers, prices increased by 5.3%.
Despite this, SPF Private Clients chief executive Mark Harris said cheaper mortgage rates meant first-time buyer mortgages are more affordable: “However, it is important that buyers plan ahead for potential interest rate rises and ensure they can afford their mortgage once this happens.”
