Continued growth for housing market

Housing Wed, Mar 23, 2016 10:30 AM

Continued growth for housing market

House prices rose by 3.2% in the year to the end of November across England and Wales, but were up 10.6% in London, the Land Registry has said.

There was a wide range of annual price changes across the various regions, with the North East of England seeing a fall of 1.6%, the figures show.

The Land Registry said that the average home went up in value by 0.1% in November compared with October. That meant the average home was valued at £165,411.

The biggest gain in value annually after London was in the South East of England, where prices rose by 3.5%.

Terraced homes showed the biggest annual increase in prices, by 3.9% on average, with semi-detached properties showing the slowest increase, up 2.5%. Activity in the UK housing market has been picking up pace over the year, with sales and prices on the increase.

However, many measures consider both still to be well below the levels seen during the housing boom of the last decade.

The latest figures from the Office for National Statistics (ONS) also suggested that prices in London were growing more rapidly than the national average in the year to the end of October.

The Land Registry data includes houses bought for cash, as well as those purchased with mortgages. It is also based on actual sale prices, whereas the ONS figures are based on mortgage completions.

Meanwhile, Downing Street has said that almost 750 homes have been bought via the Help to Buy mortgage guarantee scheme. The UK-wide scheme, started in October, lets people buy homes with a deposit as small as 5% of the total cost.

Releasing figures from the start of the scheme up to 18 December, Downing Street said almost 750 homes had been bought and about 6,000 people had made offers on properties.

The figures come from RBS and Lloyds Banking Group, the two lenders which joined the scheme from the start.

Under the Help to Buy mortgage guarantee scheme, the government allows lenders to buy a seven-year "guarantee" - backed by the taxpayer - covering 15% of the loan value in case the borrower defaults.

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