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Average property price in Scotland reaches 200000 pounds

Written by : News | Tue 09th Dec 2014

Property prices in Scotland have surged by 6.7 per cent year-on-year to reach £200,000 on average, according to official figures.

Across the UK prices stretched to a new all-time high of £274,000 on average in August – an 11.7 per cent increase on last year.

Growth in property values in London continued to outstrip the rest of the UK, with prices in the capital leaping by 19.6 per cent to stand at £514,000 typically in August, the Office for National Statistics (ONS) data showed.

Average house prices in London pushed over the half a million pound mark for the first time in July.

Prices across the country jumped by 0.6 per cent month-on-month in August, which was a weaker increase than a 1.6 per cent monthly uplift recorded in July.

Many other reports covering developments in the housing market in recent weeks have pointed to the pace of house price growth softening, particularly in London following the capital's strong run of increases.

These reports have suggested that speculation over interest rate rises, tougher mortgage lending conditions and potential buyers baulking at some of the prices being demanded by sellers are prompting the start of a calmer phase for the housing market in the coming months.

A first-time buyer typically faces paying 12.9 per cent more for a home than they did a year ago, with the price of a starter home now standing at around £210,000, the ONS figures showed.

Property values across England and Scotland are continuing to hit record highs, while those in Wales and Northern Ireland have still to catch up with the levels seen before the financial crisis struck.

Average house prices in England have increased by 12.2 per cent year on year in England to reach £285,000, by 4.7 per cent in Wales to reach £172,000, and by 9.6 per cent in Northern Ireland to reach £143,000, according to the ONS data.

The regions where property prices have risen above their pre-financial crisis peaks to reach record levels are London, the South East, the East, the East Midlands, the West Midlands and the South West.

Every region has recorded price growth over the last year, from London's 19.6 per cent increase to a 3.8 per cent uplift recorded in the North East, where average prices stand at £154,000.

Howard Archer, chief UK and European economist for IHS Global Insight, said that despite the latest "robust" figures from the ONS, house price growth is generally likely to become more restrained.

Toughened lending rules came into force in April under the Mortgage Market Review (MMR), which forces lenders to question mortgage applicants in more thorough detail about their spending habits, to make sure that they can truly afford their home loan.

Dr Archer said: "Even so, house prices do seem likely to keep rising over the coming months - with support coming from a relatively strong economy, high and rising employment, elevated consumer confidence, still relatively low interest rates and some pick-up in earnings growth in 2015.

"In addition, housing supply tightness will still likely be a factor supporting prices to some degree in a number of areas."

Campbell Robb, chief executive of Shelter, said: "Ever-rising house prices mean more young people and families stuck in the 'rent trap' without a settled home of their own."


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