South East house prices grow more than London

Sout East of England leads the way with the highest house price growth in last 12 months

The average property across England has risen 7.6% to £284,000 in the last 12 months to February with the South East growing by 11.4%.

London was up 9.7% with properties on average worth £524,000 up 49% since peak before the crash in 2008.

Stephen Smith, director of housing partnerships at Legal & General, said it was unlikely that house prices would stop rising any time soon.

He said: “With the demand for housing continuing to grow, amid a lack of supply, it’s hard to see anything other than more rises to come in the short to medium term.

“The UK housing market is paralysed by the mismatch between supply and demand, and unless all parties with a vested interest in solving the crisis make a concerted effort to work together, we will continue to have a dysfunctional market, where the real loser is the consumer.”

Howard Archer, chief UK economist at IHS Global Insight, said: “House prices should be underpinned by reasonably healthy buyer interest, supported by largely decent economic fundamentals and the probability that interest rates will not rise this year, as well as by a relative shortage of properties.

“However, there could well be an appreciable easing back in buyer interest from the buy-to-let and second house buyers now that the April rise in stamp duty has kicked in. Increasing domestic economic and political uncertainties could also rein in housing market activity, especially in the run-up to June’s EU referendum.”

He added that prices were also likely to be capped by stretched borrowing ratios and stricter mortgage lending criteria.

12 Month House prices Increases to February 2016
South East 11.4% £368,000
East 10.3% £317,000
London 9.7% £524,000
South West 7% £263,000
East Midlands 6% £198,000
West Midlands 4.1% £204,000
Wales 2.8% £173,000
Northern Ireland 2.4% £157,000
North West 2.1% £180,000
Yorks & Humber 1.5% £180,000
North East 1.4% £158,000
Scotland -0.8% £189,000

Written by: Houseladder