Biggest annual house price increase

According to data out this week, house prices in the UK have had their biggest annual increase for 7 years – 11.7%, according to the Office of National Statistics.
In London, the average priced house is now £514,000 – the first time it has risen above half a million pounds.

The Council of Mortgage Lending reported that total lending had reached £19.7bn in July which is 18% higher than a year before.  London has recorded the strongest growth – 19.1% with the South East at 12.2%.

The figures for first time buyers show that the average amount paid was £209,000 which is 13.5% higher on average than during July last year.  This is the greatest yearly increase for the first time buyer market since March 2005.

Existing owners paid on average £313,000 – an increase of 10.9% over the same time frame.  The last time that this rapid rate of increase in house prices occurred was in July 2007.