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| London house prices outstrip 2007 peak with a 2.8% increase | London house prices outstrip 2007 peak with a 2.8% increase |
| (9 months later) | |
| The average price of a house in London is now higher than in 2007, when the UK housing market was at its peak, according to figures from Nationwide building society. | The average price of a house in London is now higher than in 2007, when the UK housing market was at its peak, according to figures from Nationwide building society. |
| They show prices across the country were unchanged in March, but up by 0.8% on the same period of 2012 – the first time since February 2012 that the annual rate of change has moved into positive territory. | They show prices across the country were unchanged in March, but up by 0.8% on the same period of 2012 – the first time since February 2012 that the annual rate of change has moved into positive territory. |
| The average price of a UK home is now £164,630 – almost £20,000 below the peak of £186,043 recorded in October 2007. | The average price of a UK home is now £164,630 – almost £20,000 below the peak of £186,043 recorded in October 2007. |
| However, the society's quarterly index showed that in London prices have bounced back to the levels seen before the banking crisis began to take its toll. | However, the society's quarterly index showed that in London prices have bounced back to the levels seen before the banking crisis began to take its toll. |
| Between January and March the average price of a property in the capital increased by 2.8%, to £306,919. Prices are now 4.6% higher than in the first quarter of 2012. | Between January and March the average price of a property in the capital increased by 2.8%, to £306,919. Prices are now 4.6% higher than in the first quarter of 2012. |
| Some areas of the capital have seen double-digit growth over the past year. According to Nationwide's figures, Camden house prices are up by 15% year-on-year, while Hammersmith and Fulham, Newham and Southwark have recorded growth of more than 10%. | Some areas of the capital have seen double-digit growth over the past year. According to Nationwide's figures, Camden house prices are up by 15% year-on-year, while Hammersmith and Fulham, Newham and Southwark have recorded growth of more than 10%. |
| In contrast, prices in Scotland dipped by 4.9% over the year to an average of £128,594, and areas in the north of England have all experienced year-on-year price falls. | In contrast, prices in Scotland dipped by 4.9% over the year to an average of £128,594, and areas in the north of England have all experienced year-on-year price falls. |
| The monthly stagnation in house prices comes despite some signs of life in the housing market earlier in the year, and the government's attempts to inject money into the mortgage market through its Funding for Lending scheme, offering cut-price loans to banks and building societies. | The monthly stagnation in house prices comes despite some signs of life in the housing market earlier in the year, and the government's attempts to inject money into the mortgage market through its Funding for Lending scheme, offering cut-price loans to banks and building societies. |
| Robert Gardner, Nationwide's chief economist, said: "In recent months buyer demand has been supported by healthy rates of employment growth, as well as the Funding for Lending Scheme, which has helped to reduce mortgage costs and increase credit availability. At the same time, housing supply has remained relatively constrained. | Robert Gardner, Nationwide's chief economist, said: "In recent months buyer demand has been supported by healthy rates of employment growth, as well as the Funding for Lending Scheme, which has helped to reduce mortgage costs and increase credit availability. At the same time, housing supply has remained relatively constrained. |
| "The outlook for the market is unusually uncertain, in part because the prospects for the wider economy are unclear, but also as the impact of a number of policy initiatives is hard to gauge." | "The outlook for the market is unusually uncertain, in part because the prospects for the wider economy are unclear, but also as the impact of a number of policy initiatives is hard to gauge." |
| Commentators have suggested that house prices may be pushed up by one of the centrepiece policies in George Osborne's recent budget, which was a plan to offer interest-free loans and guarantees to support £130bn of new mortgages from 2014. | Commentators have suggested that house prices may be pushed up by one of the centrepiece policies in George Osborne's recent budget, which was a plan to offer interest-free loans and guarantees to support £130bn of new mortgages from 2014. |
| The Office of Budget Responsibility warned the Help to Buy scheme could cause a housing bubble without increasing the supply of new properties. | The Office of Budget Responsibility warned the Help to Buy scheme could cause a housing bubble without increasing the supply of new properties. |
| Land Registry data | Land Registry data |
| Meanwhile, latest figures from the Land Registry for February show that house prices rose by 0.2% since January and year-on-year by 1%, bringing the average house price in England and Wales to £162,606. | Meanwhile, latest figures from the Land Registry for February show that house prices rose by 0.2% since January and year-on-year by 1%, bringing the average house price in England and Wales to £162,606. |
| Only the cost of detached properties fell – by 0.2% – while the cost of semi-detached and terraced houses and flats and maisonettes all increased during that time. Flats and maisonettes showed the biggest rise, with prices up 2.2% in February compared to 2012. | Only the cost of detached properties fell – by 0.2% – while the cost of semi-detached and terraced houses and flats and maisonettes all increased during that time. Flats and maisonettes showed the biggest rise, with prices up 2.2% in February compared to 2012. |
| The latest repossession volumes, included for the first time in the Land Registry's report, decreased by 26% in December 2012 to 1,193 compared with 1,612 in December 2011. | The latest repossession volumes, included for the first time in the Land Registry's report, decreased by 26% in December 2012 to 1,193 compared with 1,612 in December 2011. |
| "February property prices edged higher, according to the Land Registry, offsetting more negative lending figures from the Council of Mortgage Lenders and the British Bankers' Association for the same month," said Jonathan Harris, director of mortgage broker Anderson Harris. | "February property prices edged higher, according to the Land Registry, offsetting more negative lending figures from the Council of Mortgage Lenders and the British Bankers' Association for the same month," said Jonathan Harris, director of mortgage broker Anderson Harris. |
| "However, before we get too carried away it is important to realise the national average masks significant regional differences, with prices falling in parts of the country and London continuing to outstrip the rest. We expect this situation to continue throughout this year." | "However, before we get too carried away it is important to realise the national average masks significant regional differences, with prices falling in parts of the country and London continuing to outstrip the rest. We expect this situation to continue throughout this year." |