Outlook is 'positive' as house prices rise again

HOUSE prices in England and Wales are up 4.9 per cent from a year ago – taking the average price of a home to £238,839, according to figures published this week. In November alone prices increased by £1,400, the LSL/Acadata index shows.

Prices increased on an annual basis in all regions for the second month in a row, signalling a broad housing market recovery.

By the end of 2013 the index predicts that sales are set to be 16 per cent higher than in 2012, adding to the positive outlook for the residential property market.

The data from LSL follows a release from e.surv last week, which showed monthly home loans in November topped 70,000 for the first time since 2008.

“The housing market is almost unrecognisable from 12 months ago. Not only have average prices climbed to a new high but we’ve seen an increase in every region, a true sign that the nationwide recovery is really taking off,” said David Newnes, director of LSL Property Services.

“Competition is strong through rising demand and supply of new instructions not growing, a factor that will continue to prop up prices in the long term. Confidence is higher throughout the market, with the Help to Buy scheme and record low interest rates contributing to positivity.”

Comments (8)

Please log in to enable comment sorting

9:46am Tue 17 Dec 13

Yarbles says...

High house prices benefit the banks, estate agents. They do not benefit the majority. Why is it good to pay more for a place to live?
High house prices benefit the banks, estate agents. They do not benefit the majority. Why is it good to pay more for a place to live? Yarbles

11:21am Tue 17 Dec 13

magical trevor says...

It is an indication that the economy is healthy....it doesn't state in the article anywhere, that this is about whom the rise in prices benefits.
It is an indication that the economy is healthy....it doesn't state in the article anywhere, that this is about whom the rise in prices benefits. magical trevor

12:17pm Tue 17 Dec 13

ELBEAN says...

Surely the price for a small home should be no more that £80k.
Surely the price for a small home should be no more that £80k. ELBEAN

12:23pm Tue 17 Dec 13

magical trevor says...

That's a sensible suggestion ELBEAN.....not!! Let the market dictate the price...this isn't a Marxist country.
That's a sensible suggestion ELBEAN.....not!! Let the market dictate the price...this isn't a Marxist country. magical trevor

3:47pm Tue 17 Dec 13

fellsman says...

The price of any home is what the buyer wishes to pay
The price of any home is what the buyer wishes to pay fellsman

10:03am Wed 18 Dec 13

jazzactivist says...

Surprised at you Magical Trevor. You're usually a voice of reason! A rise in house prices isn't positive news for younger people who live and work in and around the Lakes. House prices, for an ordinary 2 bed terrace or three bed semi need to be around £80,000, as Elbean says, for people earning the average local salary here (£20,000) to be able to afford to buy their own home. House prices here are already well above that, unless you live and work in Barrow.

The only people who will benefit from this price rise are the greedy people who have more than one property, or who want to make a huge profit on their home when they downsize in old age. Likely to be the same people who then moan about being expected to pay for their own elderly care.

Whoever is in government needs to act to disconnect the concept that a home is an 'investment'. Homes are for living in and, in a culture where home ownership is highly valued, should be affordable to the majority of people with no-one who works for a living left out of the loop. It's a scandal that in this area people who do valuable skilled work need to go on the housing waiting list for either social or affordable housing, taking up places that should be for people who can't work due to illness, disability or age, while there are many properties sitting unsold due to the high price being asked or empty for most of the year due to 'investment' / holiday homes.
Surprised at you Magical Trevor. You're usually a voice of reason! A rise in house prices isn't positive news for younger people who live and work in and around the Lakes. House prices, for an ordinary 2 bed terrace or three bed semi need to be around £80,000, as Elbean says, for people earning the average local salary here (£20,000) to be able to afford to buy their own home. House prices here are already well above that, unless you live and work in Barrow. The only people who will benefit from this price rise are the greedy people who have more than one property, or who want to make a huge profit on their home when they downsize in old age. Likely to be the same people who then moan about being expected to pay for their own elderly care. Whoever is in government needs to act to disconnect the concept that a home is an 'investment'. Homes are for living in and, in a culture where home ownership is highly valued, should be affordable to the majority of people with no-one who works for a living left out of the loop. It's a scandal that in this area people who do valuable skilled work need to go on the housing waiting list for either social or affordable housing, taking up places that should be for people who can't work due to illness, disability or age, while there are many properties sitting unsold due to the high price being asked or empty for most of the year due to 'investment' / holiday homes. jazzactivist

12:33pm Thu 19 Dec 13

mailman1964 says...

house prices only rising because no houses are being built.
decades of neglect by all parties.
governments like to home owners happy , so keeping the status quo has been in all interests except those who don't have one or cant afford a house.

need to start building them by the bucket load or put up interest rates. that will remedy the house price problem
house prices only rising because no houses are being built. decades of neglect by all parties. governments like to home owners happy , so keeping the status quo has been in all interests except those who don't have one or cant afford a house. need to start building them by the bucket load or put up interest rates. that will remedy the house price problem mailman1964

7:42pm Thu 19 Dec 13

Milkbutnosugarplease says...

I've been following prices on Zoopla and Rightmove websites for 3 years as I plan to buy a house. I suspect that this 'rise' is based on asking prices rather than actual selling prices. Any fool can ask £1 million for a garden shed but as to whether any buyer is daft enough to pay it, that's a different issue. The government's Help To Buy encouraged this wishful thinking and put funny ideas into sellers' and agents' heads. If there really is a rise, then it's another form of inflation. If people are borrowing huge sums, it's another debt-fest when we haven't yet paid for the last one.
I've been following prices on Zoopla and Rightmove websites for 3 years as I plan to buy a house. I suspect that this 'rise' is based on asking prices rather than actual selling prices. Any fool can ask £1 million for a garden shed but as to whether any buyer is daft enough to pay it, that's a different issue. The government's Help To Buy encouraged this wishful thinking and put funny ideas into sellers' and agents' heads. If there really is a rise, then it's another form of inflation. If people are borrowing huge sums, it's another debt-fest when we haven't yet paid for the last one. Milkbutnosugarplease

Comments are closed on this article.

click2find

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree