House Prices Increase Year on Year

In the fastest growth for the last three years, average house prices have risen 4.9% in the last year. This equates to an average of £11,219 per property and sees the average cost of a property at £238,839.

The figures were released by the LSL and Acadata Index which show that, quite surprisingly, the increase in prices applies for the whole country rather than key areas such as London and other major cities.

They call this a "broad based housing market recovery" and predict that 2014 could signal further growth in the market.

Increased Sales

The data also highlights the fact that 2013 has seen a vast increase in the number of property sales. In fact, the Index predicted that by the end of the year, sales will have increased by 16% compared to 2012.

Further support for the market comes from e.surv which shows that home loans topped 70,000 for the first time since January 2008.

LSL Director David Newnes discussed the positivity which exists in the market presently, saying "The housing market is almost unrecognisable from 12 months ago. Not only have average prices climbed to a new record high but we've seen an increase in every region for the second month running, a true sign that the nationwide recovery is really taking off. 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 the positivity."

Availability of Mortgages

Mr Newnes was quick to point out that an increase in the availability of mortgages and the variety of government schemes have both contributed to the recovery of the housing market, highlighting the second half of 2013, and saying " The increased availability of mortgages, in part thanks to the government's schemes, and the greater range of mortgage deals on offer has swung open the door to a new host of first time buyers, making the distant dream of home ownership now a reality for thousands"

In many situations where market growth is significant, the positive news for property ownership would automatically spell negativity for the rental industry but with more people being granted mortgages there is also a feeling that the rental market could enjoy a growth as more investors and more properties will become available at more competitive prices for the prospective tenants.

Indeed, Mr Newnes discussed the fact that the improvement in the market is one which can be enjoyed throughout the country, by all participants "‘The trajectory is clearly upwards. Record high house prices have not only been recorded in the capital, but also in areas of the South East including Oxfordshire, Hertfordshire and Cardiff".