UK house prices up to 2007 peak as pressure builds
House prices across the UK are back up to their 2007 peak, according to a new report by Nationwide.
The figures show that prices increased by one per cent in June, an 11.8 per cent increase on the same period a year previously.
Prices in London continue to trump those across the rest of the country, showing a 26 per cent year-on-year increase, while Scotland saw the slowest yearly growth, at 5.4 per cent.
Commenting on the figures, Nationwide’s chief economist Robert Gardner said: “In seasonally adjusted terms, house prices reached their 2007 peak in the second quarter, just as UK economic output is likely to have surpassed the high water mark reached before the financial crisis.”
However, there may be some relief ahead for house buyers, especially those looking to settle in the capital, despite the news that the average property in London now costs over £400,000.
“The annual pace of growth in the capital will probably start to slow in the quarters ahead, given the high base for comparison from the third quarter of 2013 onwards and given anecdotal evidence from surveyors and estate agents that activity may be starting to moderate,” Gardner added.
Meanwhile, the government might look to take emergency measures to boost house building in the run-up to the general election. According to a report on the BBC’s Newsnight, ministers are considering punishing councils who don’t build enough.