UK house prices reach all-time high
UK house prices have surpassed their 2007 peak to stand at a new all-time average high of STG188,903 ($A344,808) UK in June, Nationwide has reported.
London property values leapt by 25.8 per cent year-on-year to reach STG400,404 typically, marking the strongest annual rate of growth seen in the capital for 27 years.
Prices across the UK have jumped by 11.8 per cent over the last year, representing the biggest annual uplift seen since 2005.
Values across the country also increased by 1.0 per cent month-on-month, the building society said.
Matthew Pointon, a property economist at Capital Economics, described London house prices as “growing at the fastest pace since the bubble of the late 1980s”.
Pointon said that a lack of supply of homes on the market is likely to keep an upward pressure on values, despite some recent signs that demand from potential buyers is starting to fade slightly.
But Paul Smith, chief executive of estate agent Haart, said that while an annual increase in London house prices of nearly 26 per cent is “unsustainable”, this does not mean there is a bubble.
“Bubbles burst and London house prices – while completely unaffordable to many – are not about to collapse,” he said.
“That said, the market is correcting as wages are no way keeping up with property rises in the capital.”
June marks the first time that London house prices have broken through the STG400,000 threshold.
But strong annual price gains were not just confined to London and southern England.
Nationwide said in Southern Scotland prices are up by 14 per cent on the previous year, as are prices in Belfast in Northern Ireland.
In South Wales house prices have jumped 12 per cent year-on-year.