According to the Nationwide building society, annual house price growth hit 3.9% in July, which is the largest year-on-year increase for nearly three years. Average prices rose by 0.8% compared with June, meaning that the average home now costs around £170,825. However, prices still remain 10% lower than the record highs of 2007.The property and mortgage markets have been helped by the Funding for Lending and Help to Buy schemes, which were put in place by the Government to help potential buyers to secure a mortgage. Rob Wood, chief economist at banking group Berenberg said “It was only going to be a matter of time before house prices began to take off, with all the stimulus measures being thrown at the market.”
Despite the figures, there has been some scepticism about the overall growth due to the average price change not necessarily reflecting the different pace of housing market activity in different parts of the UK. Jonathan Samuels, chief executive of Dragonfly Property said “There are still many areas around the country where the property market is far from healthy, especially in the North of England.”“The recovery is promising but it is still, as yet, a patchwork recovery. The worry is that asking prices are getting ahead of economic reality,”
he added.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.Setfords Solicitors are a national full service law firm, with property law solicitors in Reading and across the country.