Annual House Price Rise Breaks 10%

House prices were 10.1% higher in April 2010 than in April 2009, gaining 0.4% during March 2010 alone.

The new figures released from the Department for Communities and Local Government (DCLG) house price graphcalculate the average price of a UK home at £207,516, factoring a 0.9% increase over the three months to the end of April.

On a yearly basis, the average value of a house rose 10.9% in England, 11.3% in Wales and  1.1% in Scotland with Northern Ireland remaining in negative figures at – 8.9%.

However, the quarterly increase was well below the 4.8% recorded in the previous three-month period and indicates the rate of price rises slowing.

Unsurprisingly, London remained the area with the highest average house price in April 2010, at £332,677, and the North East with the cheapest average house price at £139,595. Due to a large number of public sector jobs in the North-East there are fears that prices may come under further pressure as the cuts are implemented.

Annual growth in house prices were reported at 12.2% for the typical first-time buyer, compared to 12.6% in March 2010 with the average price of £153,803 being paid by those gaining a foot in the property market in April 2010.

With these figures, the financial uncertainity and news expected later today on a potential cap on mortgage lending it does raise speculation that the property market maybe heading for a double dip. Where do you think house prices will be in 12 months from now?

Photo by blech

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

AddThis Social Bookmark Button

4 Responses to “Annual House Price Rise Breaks 10%”

  1. There are so many negative factors ahead. Severe mortgage rationing, tighter regulation, higher interest rates, increased un-employment, reduced pensions, restricted pay rises, higher bills, higher taxes, reduced tax revenue (especially BP / Banks), higher inflation, increased raw material costs, higher VAT, capital gains tax increase, the demographic time bomb. We are at the start of a decade of weakness for the property market.

  2. Have to disagree.

    House prices will rise steadily, rates will stay low for a number of years in a similar fashion to japan. Hyper inflation will happen but be hidden by governments where possible to erode debts levels, which will in effect increase wages and rents and hence property prices.

  3. The only people who say that house prices will continue to increase are those with interest only mortgages with cars on Balloon Payment schemes as they want and need prices to go up as they have blown everything on a lifestyle they can’t afford and is unsustainable.

    greenbay are you one of these? Hyper inflation is something you would dream of as your hopefull large wage increase will be able to afford your overstretched interest only mortgage.

    Prices will crash to around 40% to what they are now. Why am I right, I predicted the last crash and made a fortune. I predicted the banking colapse 1 year before it happened and made a fortune. I also predicted the EU collapse which is about to happen and I am ready to make another fortune with the oncomming crash.

  4. I agree JPL, the bubble has got to pop and at present it has only really been mis-shaped, there is so much more to come.

    JPL, go on record and give a brief outline of your investing strategy for the upcoming collapses and if your feeling confident attach some time scales 🙂

Leave a Reply