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House prices increase by almost 9% in April: ONS

Gary Adams

House prices in the UK rose 8.9% in the year to April, show new figures from the Office for National Statistics.

This is slightly below March’s figure of 9.9% and means that average house price in the UK is now £256,000.

In England, an 8.9% annual rise saw the average house price move to £268,000 and in Wales, a 15.6% increase left the average house price at £185,000.

Scotland witnessed a 6.3% rise across the same time frame, giving an average house price of £161,000 and in Northern Ireland, growth of 6% gives an average house price of £149,000 as of April.

Meanwhile, London chalked up the lowest annual growth for the fifth month in a row, at 3.3%.

The North East came out on top by this metric, recording 16.9% growth with the Yorkshire and the Humber second at 12%, almost tied with the North West, at 11.8%.

“[This] increase in prices isn’t surprising considering the levels of demand which we have seen over the past year, combined with cheap borrowing rates,” says MT Finance property director Tomer Aboody.

“Questions are being asked as to whether this growth is sustainable, but while sellers are trying their luck and achieving record prices, some buyers are happy to pay slightly over market value in order to secure their dream home.”

He adds: “We have seen a drop in buy-to-let purchases due to solicitors not having capacity to deal with these and prioritising homeowner purchases before the stamp duty deadline.”

And SPI Capital chief executive Anna Clare Harper says: “This rise in house prices is, in many ways, hardly remarkable. It is a continuation of a long-term trend: house prices rising faster than most people’s wages, making ‘affordable home ownership’ for younger and less well-off people a work of fiction, unless underpinned by government support.

“The cultural shift is that, while ‘boomers’ still see home ownership as a reflection and determinant of success, younger people don’t all want or need to ‘get on the property ladder’. Yes, it would be nice, but the higher priority is quality, affordable housing, not ownership.

“With this in mind, it is a great time for investors who are serious not just about making money, but about providing good quality housing for their tenants: demand is growing.

“It is also a great time for policy makers to consider what measures will facilitate affordable rental housing for all – not just new build, prime high rise flats, but family homes, both new and existing.”

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