Following heightened media focus on the improving economy, recent statistics from Nationwide Building Society has shown a major acceleration in house prices over the last decade.
According to Nationwide, the average cost of a UK home is increasing at a rate of more than £50 per day. Areas of London, including Hackney and Islington, also featured in the survey as having doubled in price in the last ten years.
Describing the increase as “surprisingly quick”, Nationwide reported that the annual rate of growth was now running at 5 per cent throughout the UK and 10 per cent in London. When compared with May’s figure of just 1 per cent nationally, these latest figures are the strongest since 2010.
Amid widespread fears that the UK economy is heading towards a housing bubble as a result of the new Government initiatives, Help to Buy and the Funding for Lending scheme, the data from this report will arguably only increase concerns. Statistics from the report revealed that house prices in the UK rose by 0.9 per cent in the last month, taking the cost of an average home from £170,514 to £172,127.
Despite the fact that a significant north/south divide is still very prominent, the figures from Nationwide suggest that recovery in the housing market is becoming more widespread. There is now growth throughout all UK regions for the first time since 2007, although this remains stronger in the south. The gap between house prices in the north and south has now reached an all time high which exceeds £100,000.
Chief economist for Nationwide, Robert Gardner, said: “The acceleration in house price growth from the subdued pace prevailing throughout 2011 and 2012 has been surprisingly quick, though house prices are still some way below their previous peaks in most parts of the country.”
He continued: “Consumer confidence has increased significantly in recent months, thanks to further modest gains in employment and signs that the UK recovery is finally gathering momentum.”
Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.
Julie is a member of the Insolvency Practitioners Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.