House prices up 3.8%

House prices up 3.8%

The latest figures from the Office of National Statistics show that in the year to August 2013 house prices increased 3.8%, up from a 3.3% increase in the year to July 2013.

As usual prices increased faster than average in London; however growth was stable across the whole of the UK.

David Brown, commercial director, LSL Property Services, said: “There’s an air of bullish confidence surrounding the housing market at the moment.

“Prices are at record highs, demand is bubbling away nicely, and both borrowers and lenders seem to be convinced the economic downturn is well and truly a thing of the past.

"There are sure signs that the economy is on-track towards a complete recovery.

“Such fervent consumer demand must also be satisfied by an increase in the supply of affordable homes if we are to maintain accessibility and avoid prices rising beyond reach of aspirational homeowners.“

Andy Knee, Chief Executive of LMS, addressed recent talk of a housing bubble: “These figures show that there is not a ‘bubble’, but rather that there is a national upward trend being experienced by almost everyone.

“There are several reasons why house prices are continuing to rise. Not only are mortgage rates currently at their lowest level but high rents and low returns on savings mean that an increasing number of people are turning to property as a means of investment.

“First-time buyers are competing with buy-to-let landlords for a very limited supply of houses. Until more houses are built and a sense of equilibrium is restored between supply and demand, prices will inevitably continue to rise.”

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