UK house prices climbed 7.9 per cent in January compared with the same month last year, the Office for National Statistics said this morning.
It marks faster house price growth than December's 6.7 per cent. Price growth was driven by the South East and London where prices rose 11.7 per cent and 10.8 per cent respectively. Price in London are now 53.4 per cent higher than their pre-recession peak.
Excluding London and the South East, UK house price growth was 5.1 per cent.
“House prices continue their steady upwards march – as they are likely to do for some time unless Britain can address the lack of housing supply in this country," said Stephen Smith, director of Legal & General Housing Partnerships.
Rishi Passi, chief executive of Oblix Capital, said:
Behind the scenes, an imbalance between supply and demand has been squeezing the bottom end of the market, which together with a rush to beat the April stamp duty rise, has driven up prices and stretched affordability for those taking their first step on the housing ladder.
The new Lifetime ISA and Help to Save initiatives will go some way to give entrants to the market a much needed leg up, and with local authorities across England planning 270,000 houses a year over the next 15 years, the Chancellor’s commitments to house building may begin to level the playing field.