House prices hit 5 year high in July!

Research from LSL Property Services and research consultancy Acadametrics shows that house prices hit record levels in July, beating the previous best in 2008.

The England & Wales House Price Index rose 0.3% in July from the previous month with the index reaching 237.2 from 236.4 in June. The average house price across England & Wales hit £232,969; an increase of £5,796 in the last 12 months.

The report provides further confirmation of a strengthening housing market just a week after Nationwide’s own House Price Index showed a 3.9% annual rise in prices. LSL and Acadametrics’ research also highlights that 45% of all house purchases in the last year were first-time buyer purchases.

LSL commercial director David Brown attributes significant credit to government schemes such as Funding for Lending and Help to Buy, as he says: “Both schemes have helped banks boost first-time buyer lending by providing them with credit to offer more loans to new buyers and reduce rates on house purchase mortgages. Funding is more accessible for lenders, while banks are more confident than they were six months ago – which bodes well for the future.”

Brown points out that the continued uptrend in house prices is still be powered by strong performance in London where a 7.1% increase in prices is faster than anywhere else in the country.