House prices reach record high

Average house prices have reached £233,776 following an increase of £7,275 over the last 12 months.

According to the latest House Price Index issued by LSL house prices increased 0.4% in Agust from July signally a new record high.

The number of sales was over 70,000 for the second month in a row.

Richard Sexton, director of e.surv chartered surveyors, part of LSL Property Services, said: “House prices soared to a new record high in August — the fourth record high so far this year.

“The property market has turned over a new leaf after years of restrained activity following the financial crisis.

“Prices are up £883 in the last month and are £7,275 higher than a year ago due to a substantial boost in mortgage lending to first-time buyers."

Mr Sexton said the improving availability and pricing of mortgages is boosting demand for properties.

He also pointed to the impact of government schemes designed to boost the housing market.

He added: “Higher loan-to-value (LTV) mortgages are much more readily available and at lower rates, which has been the catalyst behind the vast improvement in the housing market coupled with increasing consumer confidence.

“True, those with the largest deposits have access to the best rates, but overall they are falling and those with small deposits are able to grab cheap deals.

“LSL data shows that the average age of a first-time buyer is 30 and the average deposit is £30,109. First-time buyer activity, proving particularly strong in London, as well as the rest of the UK, has been crucial in opening up many housing chains and in helping boost house prices further up the ladder.”

Today's Conveyancer