It has been estimated by the nationwide survey now United Kingdom’s house is bearing average cost approx. £164,630 which has increased last year by 0.8%
The average cost to buy a house is now more than even 2007, which, according to Nationwide building society, was the year when prices of homes at UK approached to its maximum.
It was shown that prices remained the same till March but increased to 0.8% within the same time of year 2012 when the very first time the annual changing rate went towards the positive side. The average UK house costs £164630 now, about £20,000 less than the peak £186, 043 in the month of October, 2007.
Though, according to the Nationwide building society’s quarterly index, prices in London went reverted to the position that was before the crunch in banking industry started to get its clang.
In the period started from the month January to the March, the price of property in London rose up to 2.8% to reach the level of £306,919. At present, the prices are 4.6% more compared to the month of January to March 2012.
In the past year, some parts of London witnessed double digit development. The society’s figures tell that house prices in Camden increase by up to15% from year to year, whereas Southwark and Newham , Hammer smith and Fulham registered more than 10% growth.
Contrary to this, Scotland prices decreased by up to 4.9% throughout the year to the £128,594 average. Also, the zones in the northern UK have all undergone from year to year reduction in price.
The house prices go through monthly inactivity despite indications of the house market being alive in the start of the year or the injection of money by the government in the market of Mortgage finance through Funding for Landing scheme, that provided discounted loans to building societies and banks etc.
Nationwide’s chief economist, Robert Gardner, commented that buyer demand is due to the better percentage in growth of employment in the recent months, and also because of scheme for formulating capitalization for lending which play role in decreasing the costs of mortgage and increasing credit availability of credit. He said that along with all this, the housing supply stayed constrained relatively. He also added that position for market is oddly doubtful due to the unclear prospects for wider economy and the inability to measure the effects of many policy initiatives.
Commentators have commented that prices of house could be caused to rise so much above of the strategies in George Osborne’s latest budget that was a strategy to provide loans that are interest-free and guarantees that would support new mortgages worth £130bn, from the year 2014.
It has already been notified by Office of Budget Responsibility which aid to purchase plans can lead to housing gurgle, with no increase in supply of newly property.
The Figures Of Land Registry
The recent data from Land Archive for the month of February indicated that the prices of houses increased by up to 0.2% since the month of January and then increased by 1% for every year, causing the averagely pricing of house to be £162,606 in Wales and England.
The value of only the detached properties decreased by up to 0.2% . The flats and terraced houses and semi-detached all saw increase in the costs at that time. Maisonettes and flats went through the greatest rise, having prices increased by up to 2.2% in the month of February as related to 2012.
The recent repossession data fell by up to 26% in the month of December 2012 to 1193 as compared to 1612 in the month of December, 2011. This information was not included in the Land Registry’s report before.
The director of mortgage broker Anderson Harris, Jonathan Harris said that as per Land Registry, the prices in February increased, cancelling out the effects of reverse lending statistics of February, provided by the British Bankers Association and Council of Mortgage Lenders. He also said that we should realize that the nationwide average figures conceal some major regional differences and it’s likely that rest of the parts of UK will have house prices falling, compared to the increase in London. He expects this condition to stay the same for the whole year.