London house price rises reach 20.1pc, with UK prices up 10.5pc

 
Billy Ehrenberg
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UK house prices rose 10.5 per cent in the year to May

House prices rose 10.5 per cent year-on-year for the 12 months to May 2014, outstripping the 9.9 per cent rise registered for the same period last year and higher than the 10.2 per cent expected by forecasters.

Rises were largest in London where prices increased by 20.1 per cent, higher even than April's 18.7 per cent rise. They now stand 33.7 per cent higher than their pre-crisis peak, according to figures from the Office for National Statistics (ONS).

House price inflation continues to outstrip CPI inflation, reaching 11 per cent in England, 6.5 per cent in Wales and 3.6 per cent in Scotland. Prices in Northern Ireland actually fell, by 0.7 per cent.

Although there is some consensus that prices may be falling, these figures show the strength of the property market.

The main drivers of the growth continue to be London and the South East, which continue to outstrip other regions:

London grew at 20.1 per cent, far ahead of the national average of 10.5 per cent.

The index is calculated using mortgage financed transactions that are collected via the Regulated Mortgage Survey by the Council of Mortgage Lenders. These cover the majority of mortgage lenders in the UK.

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