House prices see an increase in the past year

The house prices in the UK are 2% higher than July of 2011 as the London property market continues to grow despite the declines of the other markets in the UK. The growth rate was announced today by the ONS (Office for National Statistics). They also showed other interesting statistics and facts which speak a lot about the property market in the UK. The average price of a house in the UK stands at £234,000.

The annual increase for England is 2.4% and the usual prices are around £242,000, while the price of houses in Scotland has dropped by 1%, taking the price down to £183,000. Prices in Wales have also decreased and the houses there sell for an average of £159,000. The price of houses in Northern Ireland has dropped with the staggering 10.9% and their cost is now £130,000.

Most of the increasing house prices are registered in the South East part of England. The ONS’ report shows that if the South East and London are eliminated from the records, then the prices in the UK would have risen by just 0.6% over the last 12 months to July. The prices in London have increased by 5.7% to reach an average of £397,000 and in the mean time the prices in the North East have declined by 0.5%, reaching £145,000, the lowest house price in the regions of England.

Analysts speculate that the gap between the rapid growth of sellers and the reduced number of potential buyers will cause the prices to decline at least until the end of 2012. This speculation is backed up by the weak economy and the ongoing economical crisis in the EU. Howard archer of the HIS Global Insight stated: “We are confident that house prices will gradually drop during the last months of 2012, because of the low consumer confidence and the limited activity on this market”