House prices rise

mortgage housebuyer homebuyer agreement deal sign signing property house home
mortgage housebuyer homebuyer agreement deal sign signing property house home

House prices in the UK rose by 2.3 per cent in the year to May according to latest figures from the Office of National Statistics.

This continues the pattern seen since May 2010, with house prices relatively stable across most of the UK although falling in Northern Ireland.

The year on year increase reflected growth of 2.6 per cent in England and 3.5 per cent in Wales, which was offset by declines in Scotland and Northern Ireland of one per cent and 10.3 per cent respectively.

Annual house price increases in England were driven by a 7.2 per cent rise in London as well as increases in the South East and East Midlands of 3.4 per cent and 2.3 per cent respectively. The largest decreases in England were 1.6 per cent in the North West and 1.2 per cent in the West Midlands.

On a seasonally adjusted basis, UK house prices remain unchanged between April and May 2012.

Prices of new dwellings rose by 6.2 per cent while the price of pre-owned dwellings increased by two per cent year on year.

In May 2012 prices paid by first time buyers were 2.8 per cent higher on average than in May 2011. For existing owners prices increased by 2.1 per cent for the same period.

This means that the average mix adjusted house price in the UK in May 2012 was £228,000 while excluding London and the South East, the average UK mix adjusted house price was £183,000.

On a regional basis the average mix adjusted house prices was £237,000 in England, £154,000 in Wales, £132,000 in Northern Ireland and £177,000 in Scotland.

London continued to be the English region with the highest average house price at £388,000. The North East had the lowest average house price at £143,000. London, the South East and the East of England all had prices higher than the UK average price of £228,000.