London’s house prices have surged past their 2007 summit, helping force a yearly boost in prices countrywide for the first time in more than a year, Nationwide has reported.
Though prices were level month-on-month in March at £164,630 standard, they were up by 0.8% on a year ago, marking the initial annual increase since February last year.
Nationwide’s study established enormous variations in the performance of neighbouring housing markets, with prices up year-on-year by 15% in the London borough of Camden and in Cambridge, but down by 10% in Liverpool and Carlisle.
On a regional level, London recorded the strongest yearly increase, with a 4.6% boost pushing standard prices to a new high of £306,919 – thrashing their 2007 summit.
The capital city has enjoyed burly attention from rich abroad buyers and a number of analysts have supposed that the disaster in Cyprus is expected to force additional wealth into London as folks pursue a “safe haven” in which they can invest their money.
Wales was the second-best performing region of the UK, with prices up by 2.5% year-on-year to on average reach of £132,971.
In the meantime, house prices in Northern Ireland, which have seen burly falls ever since the financial slump, showed a great deal more constancy compared with a few months ago.
Prices in Northern Ireland were down by 0.9% year-on-year at £108,610 on average. Though, this fall is a great deal less sharp than the one at the end of 2012, when prices in Northern Ireland were down by 8.2% yearly.
Scotland was the worst-performing region of the UK in the Nationwide study, with house prices down by 4.9% to reach £128,594 standard.
The statement adds to proof that Government labours to clear the housing market are having an impact.
Lenders and estate agents have been reporting uplifts in movement, mortgage accessibility has amplified sharply and loan rates have been slashed since the Government launched its Funding for Lending scheme (FLS) last August.
House prices are expected to get an additional increase from a multibillion-pound system called Help to Buy, which was unveiled in the Budget to help additional people get on the property ladder or move up it with a 5% deposit.
On the other hand, the Government has been warned that the system should not produce a “housing bubble” and thrust up house prices to a degree which might ultimately lead to a disaster.
Robert Gardner, Nationwide’s chief economist, said that looking in front, the possible impact of Government schemes is hard to calculate because of the housing market remaining “uncertain”, partially due to the harsh financial system.
He said the level month-on-month change for house prices reflected a customary seasonal mould.