Further solid rise in house prices confirmed

UK HOUSE prices are rising strongly, ticking up by 2.9 per cent in the year to May, the Office for National Statistics announced yesterday.

The release showed the fastest year-on-year growth in prices yet seen in 2013. London contributed most to the increase, with a 6.6 per cent rise, soaring above average wage growth. In May 2013, prices paid by first-time buyers were 4.1 per cent higher on average than 12 months earlier, and for existing owners prices increased by 2.5 per cent.

As house prices continually grow at a stable pace, close to the level of general inflation, London prices are increasing faster than the UK average. Northern Ireland saw the first month that house prices have grown year-on-year since 2008.