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House Price Inflation Jumped to 9%

property prices

 

As landlords rushed to beat stamp duty changes in March, official figures show house price inflation jumped by 9%, according to The Office of National Statistics (ONS).

The ONS state the figure was up from 7.6% in the year to February.

The Council of Mortgage Lender (CML) said £13.8b was lent during the month, which is 59% more than that in February and the highest than it has been for any month since August 2007.

Tenants, meanwhile, have been provided with a flood of new rental properties as Landlords scrambled to buy houses earlier in the year before stamp duty changes took place. A record number of sales took place in March resulting in an 11.5% rise in rental properties being listed online, according to Rightmove.

The ONS figures also showed that UK house prices have increased five times faster than the average wage since 2011, according to the Resolution Foundation, which campaigns to improve living standards. The analysis by the Resolution Foundation of the ONS data shows house prices have increased by 36% over the past five years, in comparison to an increase in weekly earnings which has risen by 7% in the same period.

Specifically in Yorkshire, the average house prices have leapt by 20% over the same period to £186,000. It seems the increase in house prices compared to that of the average weekly earnings are continuing to leave first time buyers struggling to make their initial purchase on the property ladder.